The Australian dollar rebounded above $0.65 on Thursday, recovering from the previous session's losses, following a hawkish stance from the Reserve Bank of Australia.
Aussie dollar rebounds on hawkish RBA outlook
The minutes from the RBA’s November meeting indicated that the central bank remains wary of inflationary pressures, stating that monetary policy should stay restrictive until inflation is clearly on track to meet its target. However, the RBA also noted that future policy changes will depend on incoming economic data. Earlier in the week, the Aussie came under pressure from the U.S. dollar as rising tensions in the Russia-Ukraine conflict increased demand for safe-haven assets.
Trump policies supports U.S. dollar
The U.S. dollar was also supported by expectations that Trump’s policies could reignite inflation, potentially limiting future Federal Reserve rate cuts.
