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Market News AUD/USD bulls near 0.7000 as RBA's Lowe hints at further rate hikes

AUD/USD bulls near 0.7000 as RBA's Lowe hints at further rate hikes

The AUD/USD appreciates progressively following hawkish remarks from RBA Governor Philip Lowe. The RBA's Lowe hints at more rate hikes, stating that the incoming data will dictate the rate and magnitude of rate hikes. The US dollar's decline prior to Powell's speech keeps purchasers optimistic.

Daniel Rogers
2022-06-21
479

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RBA Minutes and secondary US data will be crucial to monitor for additional impetus. The AUD/USD reaches a fresh intraday high of 0.6975 as a result of Philip Lowe's moderate hawkish comments. Consequently, the Aussie pair expects the RBA Meeting Minutes to reaffirm the bullish bias during the Asian session on Tuesday morning.

 

During his address on Tuesday, Reserve Bank of Australia (RBA) Governor Philip Lowe said, citing Reuters, "Australians should be prepared for additional interest rate hikes." The official also justified the central bank's 0.50 percent rate increase by stating that rates were still'very low' and that it was crucial that increased inflation did not affect public expectations and wage claims.

 

Notably, RBA's Lowe also noted, "I want to underscore that we are not on a predetermined course." Before the release of the minutes from the most recent RBA Monetary Policy Meeting, purchasers of AUD/USD are subjected to the same examination.

 

In addition, the restoration of full markets and apprehension ahead of Fed Chair Jerome Powell's testimony provide challenges for the AUD/USD pair.

 

However, a weaker US Dollar Index (DXY) and higher Treasury rates, together with optimistic stock futures, kept AUD/USD purchasers optimistic. However, the US Dollar Index (DXY) started the week on a bearish note as the Juneteenth holiday gave bears a reprieve. It should be mentioned that the dollar index against the six main currencies fell 0.16 percent to 104.45 at the end of Monday, bringing it back to parity.

 

In addition, US 10-year Treasury rates begin the week at about 3.27 percent, largely unchanged, while S&P 500 Futures post their second straight daily increase of 1.10 percent.

 

Intraday traders will be entertained by the RBA Meeting Minutes before the Chicago Fed National Activity Index and US Existing Home Sales for the month in question. On Wednesday and Thursday, however, Federal Reserve (Fed) Chairman Jerome Powell's Testimony on the semi-annual Monetary Policy Report will get significant attention.

Technical Evaluation 

Buyers appear to be running out of steam below the 10-DMA barrier at 0.7000. At press time, however, the weekly support line at 0.6930 limits the quote's immediate decline.


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