Australian Dollar Dips as RBA Hints at Another Rate Hike

The Australian dollar dipped on Tuesday after Reserve Bank of Australia Governor Michele Bullock hinted at another interest-rate hike to restrain inflation.

Bullock emphasized that the near-term outlook remains highly uncertain, but said further moderation in domestic demand and labor market conditions would likely be necessary to curb inflation.

The currency also came under pressure from a sharp selloff in Asian equities, which soured risk sentiment.

The RBA has already delivered three rate hikes, and Bullock's comments prompted investors to trim expectations of an August rate increase, with markets pricing about a 20% chance of a move from the current 4.35% cash rate.