Michele Bullock, the Governor of the Reserve Bank of Australia (RBA), delivered a speech today. Let’s summarize the key points and assess whether her stance was hawkish or dovish:

Inflation Challenge:

  • Bullock emphasized that inflation remains a crucial challenge over the next one to two years.
  • Taming consumer prices remains a priority for policymakers.

Homegrown Inflation:

  • She highlighted that the remaining inflation challenge is increasingly homegrown and demand-driven.
  • This implies that inflation results from aggregate demand exceeding the economy’s potential to meet that demand.
  • Such inflation requires a more substantial monetary policy response.

Balancing Act:

Bullock seeks to tread a narrow path:

  • Bringing inflation back to the RBA’s target range of 2%-3%.
  • Keeping as many people as possible employed6.

In summary, Bullock’s speech leans dovish. While acknowledging the inflation challenge, she emphasizes the need for a cautious approach, considering both economic activity and employment. Her focus on homegrown inflation suggests a commitment to supporting economic growth However, market reactions may further shape the interpretation of her stance.

Source:

  1. RBA Governor Bullock: Inflation Remains a ‘Crucial Challenge’

AUD/USD Smart Money Overview:

According to the Daily View, the price is following a bearish structure. It touches on an extreme daily POI then moves bearish targeting 0.6400.

free aduusd signals

>>Smart Money Forex Signals For Consistent Frofit Learn More…

AUDUSD Technical Outlook: 

The AUD/USD is currently experiencing a decline from 0.6666, with the intraday bias remaining on the downside towards the support level of 0.6476. A breakthrough at that level would suggest that the decline from 0.6870 is set to continue towards the low of 0.6442. On the upside, a break of the minor resistance at 0.6583 would initially shift the intraday bias to neutral. However, the downside risk persists as long as the resistance at 0.6666 holds.

audusd forex signals



Source link

By admin