AUD Gains Ahead of RBA Speech Amid Inflation Concerns
The Australian Dollar (AUD) saw gains ahead of RBA Governor Michele Bullock's speech on Tuesday. The AUD/USD pair was trading around 0.6990 during Asian hours, having recovered its daily losses. Traders are closely watching the remarks from Reserve Bank of Australia (RBA) Governor Michele Bullock later in the day.
Lingering concerns over sticky inflation have kept investor sentiment cautious ahead of Australia's June and Q2 consumer price reports due on Wednesday. The AUD/USD pair may face challenges as the US Dollar stabilizes, driven by market caution ahead of the upcoming Federal Reserve policy decision due on Wednesday.
The probability of a rate hike in July sits at nearly 38% according to the CME FedWatch Tool. Citadel Securities expects the Fed to deliver a rate increase to solidify Chairman Kevin Warsh's inflation-fighting credibility following his repeated promises to restore price stability.