The AUD/USD pair trades 0.4% higher to near 0.7040 during the Asian trading session on Friday. The Aussie pair demonstrates strength as the Australian Dollar (AUD) outperforms across the board on expectations that the Reserve Bank of Australia (RBA) could deliver another interest rate hike soon.
Australian Dollar Price Today
The table below shows the percentage change of Australian Dollar (AUD) against listed major currencies today. Australian Dollar was the strongest against the US Dollar.
In February’s policy meeting, the RBA hiked its Official Cash Rate (OCR) by 25 basis points (bps) to 3.85%, and Governor Michele Bullock clarified that monetary conditions were needed to tighten as risks to inflation are tilted to the upside.
Meanwhile, surging oil prices due to the war in the Middle East that involves the United States (US), Israel, and Iran have prompted expectations of an RBA interest rate hike in the near term.
According to a report from Reuters, there is a 33% chance that the RBA may have to raise rates again to 4.1% in the policy meeting on March 17. A hike is fully priced in for May, with another one to come by the end of the year.
During the press time, the US Dollar (USD) trades calmly, with the US Dollar Index (DXY) wobbling around 99.00, as investors await the US Nonfarm Payrolls (NFP) data for February, which will be published at 13:30 GMT. Investors will pay close attention to the US official employment data to get fresh cues on the Federal Reserve’s (Fed) monetary policy outlook.
Broadly, the US Dollar has been outperforming its peers as the market sentiment remains risk-averse amid conflicts in the Middle East.
Comments
Log in or sign up to join the conversation.