Extended RBA Pause May Weigh on Australian Dollar: BBH
Brown Brothers Harriman cautions that an extended RBA rate pause could weaken the Australian dollar, despite persistent above-target inflation keeping hike risks in play.
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According to BBH’s Elias Haddad, Australian inflation remaining above the Reserve Bank of Australia’s target keeps the risk of further rate hikes alive.
However, an extended pause by the RBA could put downward pressure on the Australian dollar.
Upcoming June and Q2 Consumer Price Index data are expected to show a firm trimmed mean, which may influence the policy outlook.
Source: FXStreet Forex News