Traders await RBA Governor Michele Bullock’s speech as inflation concerns and Fed policy uncertainty weigh on sentiment.
The Australian Dollar edged up to around 0.6990 against the USD in Asian trading on Tuesday, recovering earlier losses. Market focus remains on Reserve Bank of Australia Governor Michele Bullock’s upcoming speech, which could provide clues on monetary policy amid persistent inflation worries.
Australia’s June and second-quarter consumer price reports, due Wednesday, will offer further insight into inflation trends. Meanwhile, the USD stabilized as traders brace for the Federal Reserve’s policy decision, with markets pricing a 38% chance of a July rate hike, according to the CME FedWatch Tool. September odds for a 25-basis-point increase stand at 81.4%.
The Greenback’s resilience persists despite geopolitical developments, including paused US strikes in the Middle East and mixed signals from Iran. Caution ahead of key data releases continues to drive currency movements.