Reserve Bank of Australia Governor Michelle Bullock hints at a potential interest rate increase amid above-capacity economic growth.
The Australian Dollar fell below 0.7050 against the US Dollar during Reserve Bank of Australia Governor Michelle Bullock’s speech, paring losses shortly after. The pair had peaked near 0.7075 earlier in the session before the decline.
Bullock indicated that a rate hike may be necessary in the coming months, citing the economy’s operation above capacity. She emphasized the need to slow growth to curb inflationary pressures, reinforcing a hawkish stance.
AUD/USD remains within an upward-sloping channel near 0.7050, though momentum indicators suggest weakening upside pressure. Support lies at 0.7030, with resistance near 0.7085.