AUDUSD Pierces Below 0.67 After RBA Assist Gov Hunter Speech
AUDUSD has lost 2.5 cents after the reversal early this month, and last night's comments from the RBA's Hunter gave it a push below 0.67.
AUDUSD has lost around 2.5 cents after the reversal early this month, and last night’s comments from the RBA’s Hunter gave it a push below 0.67. Over the weekend, China reported declines in both its Producer Price Index (PPI) and Consumer Price Index (CPI), fueling concerns for risk-sensitive assets, including commodity-linked currencies like the Australian dollar. Chinese officials did not announce any new stimulus measures, which only amplified the negative risk sentiment that affected commodity currencies and stock markets yesterday.
AUD/USD Chart Weekly – Faces Support at MAs Amid Bearish Momentum
Despite these challenges, the AUD/USD pair is approaching support on the weekly chart at key moving averages, which may provide some difficulty for sellers. A drop in copper prices has also contributed to the Australian dollar’s recent downward pressure, reinforcing the bearish momentum. Traders are increasingly cautious, as September’s CPI and PPI data from China raised further doubts about the effectiveness of Beijing’s stimulus measures.
RBA’s Dovish Shift Weighs on AUD
On Tuesday, AUD/USD experienced additional selling pressure, retesting the 0.6700 support level. The Reserve Bank of Australia held its cash rate steady at 4.35% in its September meeting, but the RBA’s meeting minutes, released shortly after, hinted at a more dovish outlook. This has added to the recent challenges facing the Australian dollar as market participants reassess the RBA’s future policy direction amid global uncertainty.
Comments from the RBA Assistant Governor Hunter at the Citi Australia & New Zealand Investment Conference, Sydney
- RBA Assistant Governor Hunter spoke at the Citi Australia & New Zealand Investment Conference in Sydney.
- The Reserve Bank of Australia is not currently worried about near-term de-anchoring of inflation expectations.
- Policymakers are still attentive to this potential risk.
- Households seem to have been less affected by the recent inflation spike than the RBA anticipated.
- The connection between current wage expectations and inflation expectations is relatively weak.
AUD/US Live Chart
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