AUD/USD Torn Between RBA and Fed Hawkishness

The Australian Dollar has risen by 0.20% to trade around 0.7125 as RBA officials keep the door open for further monetary tightening to combat inflation.

RBA Governor Michele Bullock stated that inflation remains 'too high' and recent developments suggest some upside risks to prices, particularly due to tensions in the Middle East.

RBA Deputy Governor Andrew Hauser also expressed caution on the inflation outlook, suggesting that the monetary tightening delivered so far may not be sufficient to return inflation to target within a reasonable timeframe.

The RBA currently maintains its policy rate at 4.35%, but markets expect another increase to 4.6% at the next meeting.