Australian dollar strengthens on RBA’s hawkish policy sentiment
The Australian dollar (AUD) retraced its recent decline on Thursday, supported by the Reserve Bank of Australia’s (RBA) hawkish outlook on interest rates. However, the AUD/USD pair could still face downside pressure as the US dollar (USD) may strengthen on safe-haven inflows amid the escalating Russia-Ukraine conflict.
The Reserve Bank of Australia’s November Meeting Minutes indicated that the central bank’s board remained vigilant about the potential for further inflation, emphasizing the importance of maintaining a tight monetary policy stance. While board members noted there was no “immediate need” to move the cash rate, they kept the option open for future adjustments, emphasizing that all options were on the table.
Source: FXStreet