RBA Governor Michele Bullock’s remarks on slowing economy and inflation risks weigh on the Australian Dollar.
The Australian Dollar declined 0.35% to 0.6965 USD in European trading, extending losses after RBA Governor Michele Bullock highlighted a cooling economy and persistent inflation risks. Bullock noted the housing market is weakening faster than expected but kept rate hikes on the table to curb inflation.
Earlier sessions saw the AUD underperform against major peers, with the steepest drop against the Canadian Dollar. The RBA’s stance contrasts with recent data showing subdued growth, raising stagflation concerns. No guidance was provided for the next policy meeting.
Traders await fresh inflation cues, with Bullock emphasizing tough decisions ahead if price pressures persist.