{"id":55198,"date":"2023-02-07T10:07:15","date_gmt":"2023-02-07T08:07:15","guid":{"rendered":"https:\/\/ironfx-com-php8.wp-dev.int.theitops.net\/?p=55198"},"modified":"2025-11-28T17:06:05","modified_gmt":"2025-11-28T15:06:05","slug":"rba-hikes-rates-powel-about-to-speak","status":"publish","type":"post","link":"https:\/\/www.ironfx-id.com\/fa\/rba-hikes-rates-powel-about-to-speak\/","title":{"rendered":"RBA hikes rates, Powel about to speak"},"content":{"rendered":"

The USD continued to be on the rise against its counterparts yesterday in the aftermath of the release of a better-than-expected US employment report for January, yet there were some signs of stabilization during today\u2019s Asian session. On the other hand, US stock markets tended to send out mixed signals yesterday, as the market is also influenced by the high number of earnings reports released, despite an initial bearish reaction to the substantial rise of the NFP figure and the tick down of the unemployment rate on Friday. Market expectations for the Fed to remain rather hawkish seem to have solidified and attention turns to Fed Chairman Powell\u2019s speech later today. Should the Fed Chairman maintain a clear, confident, hawkish tone in his speech today, we may see renewed bullish tendencies for the USD while US stock markets may weaken once again. On the flip side, we note that gold\u2019s price started to edge higher yesterday, breaking the negative correlation with the USD and seems to have the necessary tailwinds to gain even further today, yet that remains to be seen. Across the world, we note that RBA\u2019s interest rate decision caused the Aussie to jump during today\u2019s Asian session. The bank, as widely expected, hiked rates by 25 basis points and had the confidence to signal more rate hikes to come, reinforcing expectations around further RBA Hikes<\/strong>. The bank\u2019s worries about inflationary pressures in the Australian economy seem to intensify as Governor Lowe, in his statement, mentioned that \u201cIn underlying terms, inflation was 6.9 percent, which was higher than expected\u201d. At the same time, there is confidence in the Australian employment market as the Governor stated that \u201cThe labor market remains very tight… Job vacancies and job ads are both at very high levels, but have declined a little recently\u201d. Hence it should come as no surprise that the Governor\u2019s forward guidance stated that \u201cThe Board expects that further increases in interest rates will be needed over the months ahead\u201d, keeping RBA Hikes<\/strong> firmly on the table. We see the case for the hawkish stance of the bank to continue supporting the Aussie on a monetary level, yet AUD traders should remain vigilant about China\u2019s fundamentals as well as data from Australia, as both may influence expectations surrounding future RBA Hikes<\/strong>.<\/p>\n\n\n\n

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