Australian dollar depreciates despite hawkish statements
The Australian Dollar (AUD) continued its losing streak against the US Dollar (USD) following the release of key economic data on Thursday.
Australian Consumer Inflation Expectations fell to 3.8% in November, down from 4.0% in the previous month, reaching the lowest level since October 2021.
Australia's seasonally adjusted Unemployment Rate remained steady at 4.1% in October for the third month in a row, in line with market expectations.
However, Employment Change showed only 15.9K new jobs were added in October, well below estimates of 25.0K.
Reserve Bank of Australia (RBA) Governor Michele Bullock stated on Thursday that interest rates are currently quite restrictive and will remain so until the central bank is confident about inflation trends.
Bullock noted the uncertainty surrounding potential actions by the US Federal Reserve and stressed that the RBA would avoid making any hasty decisions.
The US Dollar Index (DXY), which measures the value of the US Dollar against six other major currencies, was around 106.53, the highest level since November 2023, driven by the “Trump trade” and US Consumer Price Index (CPI) data in October . Donald Trump's victory in the US presidential election last week fueled expectations of potential inflationary tariffs and other measures from his incoming administration, providing a strong boost to the Greenback.
Source : FXStreet
