The Australian Dollar weakens despite RBA Deputy Governor hinting at further tightening to curb inflation.
The Australian Dollar (AUD) fell 0.17% to 0.7070 against the US Dollar (USD) in European trading, underperforming major peers. Selling pressure persisted despite Reserve Bank of Australia (RBA) Deputy Governor Andrew Hauser indicating potential further monetary policy tightening to address high inflation.
Hauser stated inflation remains too high and that rate hikes may be needed to reduce demand. Meanwhile, the USD also weakened as weak US data eased fears of a Federal Reserve rate hike in September. Investors await the Federal Open Market Committee (FOMC) minutes from July’s policy meeting for further cues.
The AUD showed relative strength against the New Zealand Dollar but lagged other major currencies. Market focus remains on central bank signals amid mixed economic data.