RBA’s Bullock: Bringing inflation down may or may not require further rate hikes

💡 DMK Insight

RBA’s mixed signals on rate hikes are crucial for traders right now. Bullock’s comments suggest a cautious approach, indicating that the central bank is data-dependent. If inflation shows signs of being entrenched, we could see a shift in monetary policy that impacts the Australian dollar and related forex pairs. Traders should keep an eye on upcoming inflation data releases, as these will likely dictate the RBA’s next moves. If inflation remains stubbornly high, expect increased volatility in AUD pairs, particularly against the USD and NZD. The market’s current pricing of rate expectations could shift dramatically based on these data points, so being nimble is key. On the flip side, if inflation eases, the RBA might hold off on hikes, which could strengthen the AUD in the short term. Watch for key resistance levels around recent highs; a break above could signal bullish momentum. Conversely, if inflation data disappoints, we might see a quick pullback. Keep your charts ready and monitor the economic calendar closely for any surprises.