AUD/USD Volatility Ahead: Jobs, Trade Talks, and Hawkish Hints
The Australian Dollar Outlook is looking uncertain ahead of key economic releases and international events. RBA Governor Bullock struck a hawkish tone in a recent hearing, warning that inflation risks are materializing through various factors including the Middle East conflict and AI investment boom.
Bullock emphasized that demand needs to cool while productivity remains weak, leaving the door open for another interest rate hike. The Reserve Bank's modeling has come under scrutiny after officials admitted they had not run a simulation to consider how a large cut in government spending might affect inflation.
In other news, the US Federal Reserve delivered its expected rate hike, but left uncertainty surrounding future policy decisions. Meanwhile, trade negotiations between the US and China are set to reach a critical stage with talks scheduled for this weekend.