The Australian dollar weakened to around $0.647, hitting its lowest level in eleven weeks. This decline continued as risk-off sentiment in global markets intensified, overshadowing the Reserve Bank of Australia's (RBA) hawkish policy outlook. At its November policy meeting, the RBA maintained its cash rate at 3.6%, citing ongoing inflationary pressures. Although RBA Governor Michele Bullock stated that the scope for further easing was limited, the market now sees little chance of a rate cut this year.

However, despite the RBA's hawkish stance, it was not enough to lift the Australian dollar. Instead, traders focused on worsening global risk sentiment, particularly following a sharp decline in US technology stocks and valuation warnings from major bank executives. The Australian dollar was also pressured by a stronger US dollar, which was supported by uncertainty about US interest rate policy ahead of the December Federal Reserve meeting. (az)

Source: Newsmaker.id