AUD/USD surges above 0.6600 as RBA warns of upside inflation risks

Australian Dollar Price Today

The table below shows the percentage change of Australian Dollar (AUD) against listed major currencies today. Australian Dollar was the strongest against the US Dollar.

	USD	EUR	GBP	JPY	CAD	AUD	NZD	CHF
USD		-0.22%	-0.11%	-0.52%	-0.03%	-0.45%	-0.44%	-0.24%
EUR	0.22%		0.08%	-0.30%	0.16%	-0.24%	-0.22%	0.00%
GBP	0.11%	-0.08%		-0.36%	0.10%	-0.34%	-0.32%	-0.09%
JPY	0.52%	0.30%	0.36%		0.44%	0.06%	0.24%	0.31%
CAD	0.03%	-0.16%	-0.10%	-0.44%		-0.42%	-0.38%	-0.19%
AUD	0.45%	0.24%	0.34%	-0.06%	0.42%		0.01%	0.25%
NZD	0.44%	0.22%	0.32%	-0.24%	0.38%	-0.01%		0.23%
CHF	0.24%	-0.00%	0.09%	-0.31%	0.19%	-0.25%	-0.23%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Australian Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent AUD (base)/USD (quote).

Earlier in the day, the RBA held its Official Cash Rate (OCR) steady at 3.6%, as expected, and remained uncertain over interest rate cuts in the near-term amid upside inflation risks.

“Components of monthly Consumer Price Index (CPI) are little higher than expected, inflation is not running away,” RBA Governor Michelle Bullock said.

The RBA has also signaled that inflation in the third quarter is expected to come in higher than what ad anticipated in August.

Meanwhile, the US Dollar (USD) faces selling pressure due to mounting risks of potential United States (US) government shutdown as Republicans struggle to persuade Democrats to support stopgap bill before the Tuesday midnight deadline.

The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trades marginally lower around 97.80.

In Tuesday’s session, investors will focus on US JOLTS Job Openings data for August, which will be published at 14:00 GMT. The report is expected to show that US employers posted fresh 7.1 million jobs, in line with the prior reading of 7.18 million.

Economic Indicator

RBA Interest Rate Decision

The Reserve Bank of Australia (RBA) announces its interest rate decision at the end of its eight scheduled meetings per year. If the RBA is hawkish about the inflationary outlook of the economy and raises interest rates it is usually bullish for the Australian Dollar (AUD). Likewise, if the RBA has a dovish view on the Australian economy and keeps interest rates unchanged, or cuts them, it is seen as bearish for AUD.