The Australian dollar rose above $0.65 on Friday, marking its third consecutive session of gains, following comments from Reserve Bank of Australia Governor Michele Bullock.
Australian dollar crosses $0.65 level on Friday
She stated that Australia's core inflation remains "too high" to justify interest rate cuts in the near term, emphasizing that monetary policy will stay restrictive until there is greater confidence in the inflation outlook. Bullock noted that it will take some time before prices sustainably align with the RBA’s target. Earlier this week, data showed that Australia’s monthly CPI indicator increased by 2.1% year-on-year in October, matching the rise seen in September, though falling short of the 2.3% analysts had forecasted. Additionally, the Australian dollar benefited from a broader decline in the US dollar, which followed US PCE inflation data that met expectations and suggested minimal change in the Federal Reserve's approach to rate cuts.
