Australian Dollar Under Pressure, Will the RBA Change Policy Direction?
The Australian dollar (AUD) weakened against the United States dollar (USD) for the second consecutive day. This pressure arose because the US dollar strengthened following positive news regarding the US government's reopening efforts. The strengthening US dollar caused other currencies, including the AUD, to lose some of their appeal in global markets.
However, the Australian dollar still has the potential to receive support from the Reserve Bank of Australia (RBA) policy. RBA Deputy Governor Andrew Hauser stated that the central bank faces a significant challenge in maintaining a balance between controlling inflation and economic growth. He emphasized the importance of maintaining a tight monetary policy because Australia's economic recovery is occurring amidst high demand and limited production capacity.
Meanwhile, RBA Assistant Governor Brad Jones warned that global markets remain high risk and have not yet fully stabilized. He also highlighted rising geopolitical risks and emerging signs of disunity in the gold reserves of global central banks. With so much global uncertainty, the Australian dollar's value could continue to fluctuate in the near term, depending on the RBA's policy direction and international economic developments. (az)
Source: Newsmaker.id
