In the Asian session on Wednesday (June 7), the Australian dollar/dollar fell back from its highs and temporarily reported at 0.6685, an increase of 0.18%. More rate hikes are likely to come as the RBA maintains its tightening bias, noting that “further tightening of monetary policy may be required to ensure inflation returns to target within a reasonable time frame”.
The latest news from the Commonwealth of Australia:
Tim Baker said that given the RBA’s concerns about inflation risks, which the market does not seem to have fully priced in, the Australian dollar and government bond yields may continue to rise. According to Baker, the market should fully price in one more rate hike from the RBA, and possibly more risk premium, especially given that the Fed is likely to raise rates again in the next few months, and the previous expectation is that the Fed’s rate hike cycle It’s over. He believes that the Australian dollar and Australian government bond yields “could continue to rise”.
