It has been a disastrous session for AUD/USD, which has plunged 1.26% and is trading at 0.6899.
Lowe Says More Hikes Coming
RBA Governor Philip Lowe faced a grilling from Australian lawmakers earlier. Higher rates and high inflation have caused a cost-of-living crisis, and the RBA has been heavily criticized for the sharp rate-tightening cycle.
Lowe confirmed that more rate hikes were on the way due to the need to curb inflation. Lowe warned that the battle against inflation was paramount, saying high inflation could lead to an increase in inflation expectations which would result in higher rates and more unemployment. Inflation is running at 7.8%, the highest level in over 40 years, which Lowe said was “way too high”. Australia will release employment data on Thursday. The economy is estimated to have created 20,000 new jobs in January, following a decline of 14,600.
AUD/USD Technical
- AUD/USD is testing support at 0.6962. Below, there is support at 0.6846
- 0.7036 and 0.7143 are the next resistance lines
