Australian Dollar Slips on RBA Hawkish Stance and Uncertainty

The Australian dollar declined on Tuesday following comments from Reserve Bank of Australia Governor Michele Bullock. Bullock stated that another interest-rate hike may be necessary to control inflation, but emphasized uncertainty in the near-term outlook.

The currency also fell due to a sharp decline in Asian equities, which soured risk sentiment.

Marks are pricing about a 20% chance of a rate increase by August from the current 4.35% cash rate, down from around 30% previously.