Australian dollar steadies near highs as markets keep pricing a 70% chance of an RBA rate hike in August
AI Market Summary
Australia's strong May jobs print and still-elevated trimmed mean inflation keep markets pricing a 70% chance of an RBA 25 bp hike in August and a higher terminal cash rate. The AUD remains supported near recent highs, reinforced by a softer USD backdrop and firmer iron ore prices. Near-term FX sensitivity should center on upcoming inflation data and RBA communication for confirmation of hawkish follow-through.
Impact level
● Medium
Affected assets
NCFXAUD2USD/USDT+0.59%
AI Insight · NCFXAUD2USD/USDTAI Insight
▲ Bullish
Trade now
⚠️ AI-generated insights are based on news content and are provided for informational purposes only. They do not constitute investment advice or represent the views of BingX. Investing involves risk. Please trade responsibly.
Australia added 35,000 jobs in May, beating forecasts of 20,000, while the unemployment rate fell to 3.9%. Against a backdrop of mixed domestic indicators, money markets still price a 70% chance of a 25 basis-point hike at the Reserve Bank of Australia’s August meeting. Traders also expect the cash rate to peak at 4.35% by year-end. RBA Governor Michele Bullock reiterated that the board “will not hesitate” to raise rates further if inflation remains above the 2-3% target band.
