AUD Falls Despite Hawkish RBA Tone Amid Inflation Concerns

The Australian Dollar (AUD) is experiencing losses for the second consecutive day, trading at around 0.7080 during Asian hours on Wednesday.

Despite a hawkish tone from the Reserve Bank of Australia (RBA), Deputy Governor Andrew Hauser emphasized that inflation remains unacceptably high and monetary policy must work to reduce demand in the economy and bring price pressures down.

The RBA is not anticipating a recession, but it does see a general slowdown and remains concerned about upside risks to inflation. If inflation fails to cool, the central bank will have no choice but to raise interest rates again.