Weekly Roundup: Australian dollar hits multi-month highs as inflation exceeds forecasts
Amy Richards January 30th 2023 - < 1 minute read
The risk-sensitive Australian dollar strengthened from the beginning of last week, with a cheery market mood lifting the ‘Aussie’ higher.
A surprise uptick in Australian inflation further boosted AUD by raising expectations for more action from the Reserve Bank of Australia (RBA). In the last three months of 2022, quarter-on-quarter inflation rose from 1.8% to 1.9%, rather than dropping to 1.6% as was expected.
The ‘Aussie’ hit multi-month highs against many of its peers, with the bullish sentiment among investors keeping AUD afloat through to the end of the week.
This week, an expected contraction in Australian retail sales could hurt the ‘Aussie’, while downbeat Chinese manufacturing data may also weigh on the Australian dollar.
Risk appetite will likely drive most AUD movement, particularly through the latter part of the week. Will a dovish Fed decision cheer global markets, thereby boosting the ‘Aussie’?