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18/06/24
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AUD Higher After Soft US Retail Sales
On Tuesday, the Australian dollar posted strong gains, and AUD/USD traded at about 0.6646, up 0.50% for the day in the North American session.
The Australian dollar was little changed after the Reserve Bank of Australia’s decision earlier in the day but rose after US retail sales were lower than anticipated.
In a decision that was widely expected, the RBA did not make a move and kept rates at 4.35% for the fifth consecutive time. Both the rate statement and press conference by Governor Bullock were hawkish, although the Australian dollar reacted little after the decision.
The rate statement showed that policymakers were frustrated with high inflation. The RBA said that inflation was still higher than target and remained persistent and added it would do what is required to push inflation back down to target.
Bullock has said that rate hikes were still on the table, and the statement confirmed this stance, saying that the route of interest rates was still not certain, and the Board did not rule anything out or in.
Bullock said in her press conference that the central bank would stay focused on the upside risks to inflation and that although rate hikes were discussed at the meeting, rate cuts were not.
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