Australian Dollar continues to lose ground despite hawkish remarks from RBA Hunter
- The Australian Dollar extends its losing streak due to economic woes in China.
- RBA’s Hunter indicated that although inflation expectations remain anchored, persistent price growth continues to present challenges for the central bank.
- The US Dollar appreciates as strong jobs and inflation data have reduced the odds for aggressive easing by the Fed.
The Australian Dollar (AUD) extends its losing streak for the third consecutive day against the US Dollar (USD) on Wednesday, despite hawkish comments from Reserve Bank of Australia (RBA) Deputy Governor Sarah Hunter.
RBA’s Hunter reaffirmed the Australian central bank’s commitment to controlling inflation, noting that while inflation expectations remain anchored, persistent price growth continues to pose challenges.
The Aussie Dollar is facing downward pressure due to economic uncertainty in its largest trading partner, China. Furthermore, China's recently announced fiscal stimulus plan did little to lift market sentiment, as investors remain uncertain about the scale and impact of the package.
The US Dollar (USD) continues to gain support as robust jobs and Consumer Price Index (CPI) data have dampened expectations of aggressive Federal Reserve (Fed) easing. Markets are now anticipating a total of 125 basis points in rate cuts over the next 12 months.
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