Australian Dollar Down as US Dollar Holds Steady
The Australian Dollar (AUD) came under pressure against the US Dollar (USD) on Monday (11/18). However, the decline in the AUD/USD pair could be limited due to aggressive comments from Reserve Bank of Australia (RBA) Governor Michele Bullock on Thursday. Bullock emphasized that interest rates are currently quite tight and will not change 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.
Downside risks for the AUD/USD pair are supported by a solid US Dollar, driven by recent aggressive statements from Federal Reserve (Fed) officials and stronger-than-expected US economic data.
Fed Chairman Jerome Powell downplayed the possibility of an imminent rate cut, citing the economy's resilience, strong labor market and persistent inflation pressures. Powell said, "The economy is not sending any signals that we need to rush to lower interest rates."
Source: FXStreet
