Forex
AUD Holds Near Highs Amid Mixed Data Keeping RBA Tightening Bets Alive
The Australian Dollar has held near its multi-week highs as mixed data keeps Reserve Bank of Australia (RBA) tightening bets alive. The AUD/USD pair is trading in the 0.7100 neighborhood, marginally weaker on the day due to a slight regain by the US Dollar.
Recent Australian employment data showed a weak labor market that's cooling faster than expected after months of resilience. However, inflation expectations have pushed higher, muddying the outlook rather than clarifying it.
The RBA has maintained a tightening bias despite softer jobs numbers, citing sticky price pressures and rising expectations as potential upside risks. The cash rate remains at 4.35%, with the Board warning of further hikes if inflation risks build.