Reserve Bank of Australia (RBA) Governor Michele Bullock stated that inflation has not been fully defeated. While signs suggest the economy is adjusting as anticipated, it remains unclear if current interest-rate hikes are sufficient to return inflation to the target range.
Bullock expressed uncertainty regarding whether further tightening will be required to tame inflation. The RBA has kept interest rates unchanged, and the central bank continues to signal that future decisions will depend on incoming data.
4.35% Cash Rate
The current RBA cash rate
The board stands ready to raise rates further if needed.
Following the remarks, the AUD/USD moved toward the 0.6965–0.6970 area after losing the 0.6990 level. The upcoming release of Australian CPI data may influence the direction of the AUD/USD exchange rate.