FX.co ★ Australian Dollar Hovers Six-Week Low

The Australian dollar maintained a position close to $0.647, marking its lowest point in six weeks, as market participants evaluated the Reserve Bank's ongoing deliberations regarding the restrictiveness of current monetary policy. Assistant Governor Sarah Hunter emphasized the bank's analysis of three pivotal economic shifts: changes in pricing strategies by businesses post-pandemic, the persistent tightness in the labor market, and the unexpected robustness in the housing sector's response to policy measures. Hunter also advised caution regarding monthly inflation data, which can fluctuate significantly, indicating that the Reserve Bank of Australia (RBA) is cautious about forming conclusions based on isolated data points. With uncertainty lingering over whether the 3.6% cash rate is sufficiently limiting inflation to meet targets, pressure persisted on the Australian dollar. Investors are now eyeing the upcoming PMI data release for more insight into the economic landscape. Additionally, the US dollar's strength contributed to the downward pressure, as minutes from the Federal Open Market Committee (FOMC) revealed that several members opposed additional rate cuts this year.