AUD Edges Higher as RBA Hike Bets Grow Ahead of Bullock, Jobs Data

The Australian Dollar (AUD) has edged higher on Monday, trading around 0.7130 at the time of writing, up 0.06% on the day.

This increase is mainly due to strengthening expectations that the Reserve Bank of Australia (RBA) could raise interest rates again at its monetary policy meeting next week.

RBA Governor Michele Bullock reinforced further tightening bets last week during an appearance before the Parliamentary Treasury Committee, warning that inflation risks remain tilted to the upside and saying the key question is whether the monetary tightening delivered so far will be sufficient to return inflation to target within a reasonable timeframe.

Bullock's comments have been followed by attention turning to another appearance by her scheduled for Tuesday during a fireside chat in Sydney, where investors will look for fresh clues about next week's decision and the possibility of further monetary tightening.