AUD/USD Weakens Despite RBA Hawkish Tone as Markets Eye US CPI Report

The Australian Dollar weakened against the US Dollar on Thursday despite Reserve Bank of Australia (RBA) Deputy Governor Andrew Hauser's hawkish remarks.

Hauser emphasized that the RBA remains cautious about easing monetary policy, citing persistent inflation risks and a resilient labor market. He noted that the central bank needs to see sustained evidence of inflation returning to the 2-3% target before considering rate reductions.

The currency failed to hold gains as broader market sentiment remained cautious ahead of key US inflation data.