AUD Holds Firm as Hawkish RBA, Lower US Dollar Push Pair Higher
The Australian Dollar (AUD) has maintained its upward momentum against the US Dollar (USD), trading at around 0.7220 as of Tuesday, after a fifth consecutive day of gains. This comes despite the US Dollar's brief strengthening earlier in the day following attacks on Saudi energy facilities.
According to data from the New York Fed's Survey of Consumer Expectations, inflation expectations have slightly declined, with one-year expectations easing to 3.58% in August from 3.63%, while three-year and five-year measures fell to 3.2% and remained unchanged at 3.0% respectively.
Market analysts see a 60% chance of a 25-basis-point rate hike at the September 15-16 meeting, citing higher Oil prices as an added risk for inflation and tightening policy. In Australia, Reserve Bank Deputy Governor Andrew Hauser emphasized that 'the question for us is whether we have done enough on rates or need to do more,' highlighting concerns about inflation.