Australian dollar finds fleeting support from RBA rate talk as stocks slip

According to Business Recorder, the Australian dollar slipped 0.1% to $0.7075 on Wednesday, giving back gains that had only briefly held. The currency had already lost 0.2% overnight and remained below a 10-week high of $0.7129. A selloff across major stock markets weighed on risk-linked currencies, and the kiwi dollar also edged lower to $0.5869.

Reserve Bank of Australia Deputy Governor Andrew Hauser became the latest policymaker to take a hawkish tone, arguing that inflation risks remain tilted to the upside. Governor Michele Bullock had earlier said a rate hike might still be needed after the bank kept rates at 4.35% last week. Market pricing implies a 16% chance of an increase at the September 29 meeting, about 40% for November, and around 70% for one final lift to 4.60% early next year.

Wages rose a moderate 3.2% in the June quarter, with private sector pay growth at its slowest in four years. NAB economist Jessie Cameron said wage growth is not a particular driver of stubbornly high inflation, while labour market conditions do little to offset wider price pressures. Jobs data due Thursday is expected to show about 15,000 new positions in July after a 76,300 gain in June, with unemployment seen steady at 4.4%.