The Australian dollar hits its highest level in nearly 4 months following Michael Bullock’s comments. By FXNEWSTODAY

FXNEWSTODAY – The Australian dollar rose in the Asian market on Tuesday against a basket of global currencies, expanding its gains for the fourth day in a row against its American counterpart, recording the highest level in nearly four months, following comments from Australian Reserve Chair Michelle Bullock.

Which was more stringent than expected, and enhances the possibility of raising Australian prices by about 25 basis points during the next December meeting, for the second meeting in a row.

Australian dollar exchange rate today

The Australian dollar rose against its American counterpart by about 0.4% to 0.6632, the highest since the first of last August, from today’s opening price of 0.6606, and recorded the lowest level at 0.6602.

The Australian dollar ended Monday’s trading up by 0.35% against the US dollar, the third daily gain in a row, benefiting from the decline in the levels of the US currency against most major and minor currencies.

Michelle Bullock

Reserve Bank of Australia Chair Michelle Bullock said during a conference in Hong Kong on Tuesday: We need to ensure that inflation expectations remain stable, and the path of inflation in Australia is similar to its global path, and there must be some caution in using prices to reduce inflation without raising it.

Bullock explained: Maintaining the strength of the labor market is crucial even as the central bank battles signs of stubborn inflation and political noise in the country.

Australian Reserve Governor Michelle Bullock said last week: Inflation represents a critical challenge for the Australian economy over the next two years.

Australian interest

There are still possibilities that the Australian Reserve will raise Australian interest rates by about 25 basis points during the meeting on December 5, for the second meeting in a row.

In order to re-evaluate these possibilities, investors are awaiting tomorrow, Wednesday, the release of the main inflation data in Australia for the month of October. Hot readings that are higher than market expectations will strongly enhance these possibilities.

Credit Agricole (EPA:) says this data should support market prices leaning in favor of another rate hike by the Reserve Bank of Australia.

However, analysts say the Reserve Bank of Australia will likely want to wait for quarterly inflation data due in late January and the strength of Christmas sales before deciding whether to raise interest rates again.

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