Australian Dollar rises as RBA Bullock states inflation too high to consider rate cuts
The Australian Dollar receives support from hawkish comments from RBA Governor Michele Bullock.
The AUD may struggle as the United States may introduce further AI chip sanctions against China on Monday.
The US Dollar may regain its ground as the Fed remains cautious about cutting rates following robust recent inflation data.
The Australian Dollar (AUD) extends its winning streak for the third successive session on Friday following the hawkish comments from Reserve Bank of Australia (RBA) Governor Michele Bullock. However, the AUD/USD pair may face downward pressure as the United States (US) is set to unveil additional measures on Monday aimed at curbing China’s ability to advance in artificial intelligence technology.
RBA Governor Bullock stated on Thursday that Australia’s core inflation remains “too high” to contemplate interest rate cuts in the near future. She emphasized that there is still progress to be made before inflation returns sustainably to the target level, according to Bloomberg.
The downside of the US Dollar (USD) may be limited, as the Federal Reserve (Fed) is expected to remain cautious about cutting interest rates following robust inflation data released on Wednesday. The report revealed strong consumer spending growth in October but also indicated little progress in reducing inflation, prompting the Fed to stay vigilant.
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