Australian Dollar Strengthens on RBA's Hawkish Comments
The Australian dollar rose above $0.65 and approached a one-week high after Reserve Bank of Australia (RBA) Deputy Governor Andrew Hauser emphasized the need to maintain tight monetary policy to curb inflation. He said domestic demand remains slightly above potential, indicating the Australian economy is in its strongest recovery since the 1980s.
The RBA's hawkish stance reduces the likelihood of an interest rate cut in the near future, although markets still expect one cut in May next year. Improving global risk sentiment—along with hopes of an end to the US government shutdown and an easing of US-China trade tensions—has also provided additional support for the Australian dollar.
Source: Newsmaker.id