AUD Weakens Amid Hawkish RBA Comments and Weakening US Economy
The Australian Dollar (AUD) weakened despite RBA Deputy Governor Andrew Hauser's hawkish remarks, which emphasized that inflation remains too high and requires tighter monetary policy to cool economic demand.
Australia's Wage Price Index grew 3.2% year-on-year in Q2 2026, matching expectations despite hitting a multi-quarter low. This figure represents the weakest wage growth since Q4 2024.
The RBA Deputy Governor warned that if inflation fails to cool, interest rates will be raised again. Despite this hawkish stance, the AUD extended its losses for the second successive day, trading around 0.7080 during Asian hours on Wednesday.