Australian dollar rebounds from lows
The Australian dollar (AUD) extended its gains for the second straight session on Monday, supported by hawkish comments from Reserve Bank of Australia (RBA) Governor Michele Bullock on Thursday.
Bullock stressed that interest rates are currently tight enough and will remain unchanged until the central bank is confident about the inflation outlook.
The yield on the benchmark 10-year Australian government bond eased slightly to around 4.66%, down from a one-year high. Recent data showed a slowdown in employment growth in October, while the unemployment rate remained stable, highlighting the resilience of the labor market.
Market focus now shifts to the release of the RBA’s latest meeting minutes on Tuesday, which could provide further insight into the central bank’s policy stance.
The upside for the AUD/USD pair could be limited as the US dollar (USD) could continue to strengthen, driven by recent hawkish comments from Federal Reserve (Fed) officials and stronger-than-expected US economic data.
Fed Chair Jerome Powell downplayed the likelihood of an imminent interest rate cut, highlighting the resilience of the economy, a strong labor market, and persistent inflationary pressures. Powell said, "The economy is not sending any signals that we need to rush to cut interest rates."
Source: FXStreet
