The Australian Dollar rises 0.23% as the RBA signals potential further rate hikes to curb inflation.
The Australian Dollar climbed 0.23% to 0.6943 against the USD in Asian trading on Wednesday. The move follows hawkish remarks from the Reserve Bank of Australia, which left the door open for additional monetary tightening if needed to meet its inflation target.
This year, the RBA has raised interest rates three times by 25 basis points each, bringing the Official Cash Rate to 4.35%. The AUD outperformed most major currencies except the New Zealand Dollar, with investors now eyeing China’s June CPI data due Thursday.
The USD traded marginally lower ahead of the FOMC minutes from the June policy meeting, set for release at 18:00 GMT. Markets will scrutinize the minutes for clues on future Fed policy.