The new RBA Governor, Michele Bullock, sent a message of continuity and added pressure on the AUD. The economists of ING analyze the prospects for the Australian dollar.
The new governor of the RBA does not surprise
The RBA kept rates on hold on Michele Bullock’s debut as Governor. The markets are pricing in around 10 basis points of tightening in December. Our stance is more aggressive than the general consensus, as we see significant chances that a CPI surprise will force a final rise to the top.
As a last resort, Not even another rise would turn the tide for the Australian dollar.
The sharp rise in US yields and the soft risk environment should keep AUD/USD under pressure for now.
The risk now is that the correction extends to 0.6200/0.6250.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
