AUD/USD edges higher to approximately 0.6950 in Friday’s Asian session. The RBA’s Hunter has reiterated that the board will implement the necessary measures to reduce inflation to its target level. Fed’s Williams stated that he is not anticipating a prolonged rise in energy prices. The AUD/USD pair draws interest from buyers around the 0.6950 mark during the Asian trading hours on Friday. The Australian Dollar strengthens against the US Dollar on hawkish rhetoric from the Reserve Bank of Australia.
RBA Assistant Governor Sarah Hunter indicated on Wednesday that the board will take necessary measures to bring inflation back to its target, cautioning that some tightening may be necessary if the oil shock raises inflation expectations, according to source. The Australian central bank has enacted three interest rate hikes of 25 basis points each this year, raising the Official Cash Rate to 4.35%. Current ASX 30-day Interbank Cash Rate Futures indicated a modest 19% market expectation of a rate hike to 4.60% at the upcoming August meeting.
According to the Federal Reserve Minutes from the meeting held on June 16 to 17, the first under new Chairman Kevin Warsh, many participants indicated that the key rate would remain unchanged or slightly below its current level of 3.6% by the end of this year. However, a significant number of analysts indicated that it is expected to be higher by the end of the year. New York Fed President John Williams stated on Thursday that, in light of the renewed hostilities in the Middle East, he does not anticipate a prolonged increase in energy prices for the remainder of the year.