AUD/USD Reverses Course Ahead of Jobs Report and Trump, Xi Summit
The Australian dollar's rally has come to an end as stronger US inflation data and a firmer US dollar have weighed on AUD/USD. The focus is now shifting to Australia's final employment report before next week's Reserve Bank of Australia (RBA) decision, alongside fresh RBA commentary and the upcoming Trump, Xi summit.
RBA Governor Bullock struck a hawkish tone before the House on Friday, warning that inflation risks are already materialising through the Middle East conflict, the AI investment boom, and other cost pressures. She also made it clear that demand still needs to cool while productivity remains weak, keeping the door firmly open to another hike.
The jobs report may matter less if Governor Bullock decides to ramp up expectations of a hike when she speaks on Tuesday. If she wants to steer markets towards a move next week, this would be an ideal opportunity.