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Australian dollar edges higher near 0.6990 ahead of Bullock remarks
AUD/USD was trading around 0.6990 after rebounding from daily losses, as traders weighed RBA Governor Michele Bullock’s scheduled speech and heightened uncertainty around the next Fed decision.
The Australian dollar moved modestly higher in Asia, with AUD/USD recovering from its earlier daily decline and trading around 0.6990 on Tuesday.
FXStreet said traders were looking ahead to scheduled remarks from Reserve Bank of Australia Governor Michele Bullock later in the day, while sentiment remained cautious amid concerns about sticky inflation ahead of Australia’s June and Q2 consumer price reports due Wednesday.
The brief also noted that the US dollar steadied as markets prepared for the Federal Reserve policy decision due Wednesday, citing the CME FedWatch Tool with nearly a 38% chance of a July rate hike.
Looking ahead, it said the probability of at least a 25-basis-point hike in September was about 81.4%, and it pointed to additional drivers of AUD including Australia’s interest rate outlook, iron ore prices, and the health of China’s economy.