Ella 
The Australian dollar extended its losing streak since Monday’s opening bell. The AUD/USD currency pair is under downward pressure following hawkish comments from Federal Reserve Chairman Jerome Powell on Thursday. Federal Reserve Chairman Powell’s speech triggered a rise in the U.S. dollar (USD) and U.S. bond yields, affecting AUD/USD fluctuations.
The Reserve Bank of Australia released its Monetary Policy Statement (MPS) on Friday, stating that Australia’s inflation level is likely to have exceeded its peak. However, the statement noted that inflation continues to remain elevated and is proving to be more persistent than initially expected a few months ago. The board’s main focus is getting inflation back to target. After discussions, the Reserve Bank of Australia once considered suspending interest rate increases in November, but ultimately decided that interest rate increases can provide greater guarantees in dealing with inflation.
The Reserve Bank of Australia (RBA) struck a dovish tone despite raising interest rates by 25 basis points at its last meeting. The Reserve Bank of Australia has adopted a data-reliant strategy for policy measures to address the ongoing challenges posed by inflation and the slowdown in Australia’s economy.
Federal Reserve Chairman Jerome Powell is concerned that policy may not be restrictive enough to bring inflation down to its 2% target over time. However, the market generally believes that the Fed has ended its tightening cycle.
Additionally, U.S. initial jobless claims for the week ended November 4, reported on Thursday, were lower than market expectations. The result could bolster confidence in the strength of the U.S. labor market, providing more support for the dollar.
