Weekly Roundup: Australian dollar climbs on RBA rate hike bets
Amy Richards October 31st 2023 - < 1 minute read
The Australian dollar suffered an initial slip at the start of the week, but soon regained its footing as Australian inflation exceeded forecasts, thereby boosting Reserve Bank of Australia (RBA) interest rate hike bets.
Mixed comments from RBA Governor Michele Bullock saw AUD fluctuate midweek. However, expectations of another rate hike at next week’s policy meeting ultimately underpinned the ‘Aussie’.
Hotter-than-forecast producer price inflation added to RBA rate hike bets at the end of the week, helping the Australian dollar end strongly.
AUD has also wavered higher so far this week, thanks to stronger-than-forecast retail sales and a cautiously optimistic market mood.
Australia’s balance of trade data could impact AUD moving forward. Could a slight narrowing of the trade surplus see the currency soften?