Ella 
The Australian dollar (AUD) continues to trend higher, recording a third straight day of gains on Wednesday. A hawkish speech from Reserve Bank of Australia Governor Bullock provided upward support for the AUD/USD pair.
The Australian Bureau of Statistics reported on Wednesday that the consumer price index increased in the third quarter of 2023, exceeding the increase in the second quarter.
Reserve Bank of Australia Governor Bullock spoke at the Commonwealth Bank of Australia’s Global Markets Conference in Sydney on Tuesday, emphasizing his commitment to achieving the inflation target within a reasonable time period.
Governor Bullock suggested that maintaining the current cash rate would fully achieve this goal, but he also recognized the potential danger of inflation returning to target at a slower pace than expected. The board has a limited tolerance for such discrepancies and would be prepared to raise interest rates if the inflation outlook were to revise significantly higher.
Investors will be closely watching Reserve Bank of Australia Governor Bullock’s speech on the state of the Australian economy when he testifies before the Senate Economic Legislation Committee in Canberra on Thursday.
The initial value of the U.S. S&P Global Purchasing Managers Index released on Tuesday was positive, and the U.S. dollar index consolidated after narrowing its recent losses. However, falling U.S. Treasury yields could put downward pressure on the dollar.
U.S. economic indicators eased concerns about the potential negative impact of tighter monetary policy and rising borrowing costs on investment and industrial activity.
