The Australian dollar gained Wednesday, Reuters reported, after Reserve Bank of Australia (RBA) Deputy Governor Andrew Hauser said inflation prospects had worsened ahead of the bank’s November rate decision.
At 1:25 a.m. ET (05:25 UTC), the currency traded at $0.70155, up 0.2%, after touching $0.70289 earlier in the session, according to Reuters. The outlet put the U.S. dollar index at 101.79, following a low of 101.50 on Oct. 20, and described it as near a three-week low.
Hauser told Citi’s Australia & New Zealand Investment Conference that the inflation outlook looked “materially worse” than the RBA had projected in August. He pointed to higher oil prices, demand linked to artificial intelligence and pressure on domestic capacity. The bank had yet to complete its forecasts or make its November decision.
The RBA raised its cash rate target by 25 basis points to 4.60% on Sept. 29 and left open the possibility of another increase. Hauser said tighter policy was slowing activity, leaving the board to weigh inflation risks against weaker growth and employment.
Those pressures carry different costs for households. Hauser said higher rates burden mortgage holders, while high inflation weighs especially heavily on low-income renters.
The U.S. Treasury’s 10-year constant maturity yield fell to 5.12% on Oct. 20 from 5.15% on Oct. 19. Its daily figures reflect indicative quotations collected at or near 3:30 p.m. ET, placing that decline before Wednesday’s Australian dollar snapshot.
Oil also changed direction between the two sessions. The Associated Press reported that Brent climbed toward $112 a barrel Tuesday but was below $109 later that day. By 3:47 a.m. ET (07:47 UTC) Wednesday, Brent crude futures were at $110.11 a barrel, up $1.32, or 1.2%, Reuters reported. EconoTimes covered Tuesday’s declines in crude and the U.S. dollar.
The Australian Bureau of Statistics is scheduled to release September consumer price data at 8:30 p.m. ET Oct. 27 (11:30 a.m. AEDT Oct. 28). The RBA’s next policy decision is due at 10:30 p.m. ET Nov. 2 (2:30 p.m. AEDT Nov. 3).
