AUD Strengthens, RBA Becomes More Hawkish
The Australian dollar strengthened to around $0.660 on Thursday (October 9), extending the previous session's gains. The main driver was consumer inflation expectations, which rose to 4.8% in October from 4.7% in September—the highest since June—amid concerns that Q3 inflation could exceed estimates. Price increases were driven by the removal of subsidies, rising labor costs, and global trade and commodity pressures, adding to signs of persistent price pressures.
These signals reinforce the cautious stance of the Reserve Bank of Australia (RBA), which is expected to hold its benchmark interest rate after maintaining it at 3.6% in September, citing persistent inflation and a tight labor market. Meanwhile, the US dollar's gains were limited as investors continued to weigh the impact of the ongoing government shutdown, which fueled demand for safe-haven assets. The market now awaits comments from Fed Chair Jerome Powell later today, following the release of the FOMC minutes, which showed mixed views on the future direction of interest rates.
Source: Newsmaker.id
