AUDUSD Pulls Back From 3-Month High Amid Dollar Recovery

Published on Nov 22, 2023 12:57

The Australian dollar pulled back from near three month high as dollar recovered modestly after FOMC minutes. Dollar reversed some of its recent losses and bounced back after FOMC minutes sounded cautious and indicated that interest rates could remain restrictive for some time. FOMC participants also noted that further tightening of monetary policy would be appropriate if incoming information indicated that progress toward the Committee`s inflation objective was insufficient. The dollar index that measures the greenback against a basket of currencies is quoting at 103.64, up 0.18% on the day, coming off a two and half month low. Meanwhile, AUDUSD was on back foot after the pair spiked to its best levels in over three months yesterday on hawkish RBA minutes. Governor Bullock said that the inflation problem is a major concern for the next year or two since it is a result of underlying demand rather than just supply problems. AUDUSD was seen trading at 0.6542, down 0.32% on the day.