AUD/USD is stuck at 0.6900 and is unwilling to move

Phillip Lowe, the governor of the Reserve Bank of Australia, is now on the record saying that a hike in the cash rate is coming soon. The AUD/USD exchange rate is frozen at 0.69 as traders look for any hint from the governor of a 75 bp hike. However, so far in the speech, there has been no mention of such an increase.

The RBA said in its minutes that it is prepared for additional monetary tightening to go along with its most recent unexpectedly large rate increase, and officials vowed to continue to be steadfast in their fight against skyrocketing inflation. This led to an increase in the Australian dollar on Tuesday. In light of the tight labor market and impending inflation, the board noted that current interest rates were "still reasonably modest."

The governor brought up the most recent job statistics, which were released last week. According to this, Australia's net employment rose by 88,400 from May to June, which was more than three times the market expectation of a 30,000 rise. At the same time, the jobless rate decreased to a 48-year low of 3.5 percent. The Australian dollar is anticipated to appreciate along with threats from rising global inflation.