AUD/USD gained traction after inflation data from Australia showed the strongest level in 33 years. Economists at UBS expect the Aussie to remain on a solid foot.

RBA will continue to tighten policy at its next meeting

“We expect the Aussie to be supported by China’s reopening, Australia’s relatively strong economic growth, and a central bank that is likely to keep the reins tight when the Fed starts to ease monetary condition.”

“The latest consumer price inflation data hit its strongest level in 33 years, reigniting speculation that the Reserve Bank of Australia will continue to tighten policy at its next meeting.”