Australian Dollar: Hawkish RBA tone versus tech risk – ING

Source Fxstreet

ING’s Francesco Pesole says AUD/USD remains under pressure from the tech-led equity sell-off, given the Australian Dollar’s high correlation with semiconductor stocks. Domestically, hotter core inflation should keep Reserve Bank of Australia communication hawkish, even without further hikes. Pesole stays optimistic on a move well above 0.70 in H2, though he flags near-term downside toward key supports.

Core CPI supports but risks stay

"AUD/USD is taking a breather just above 0.690 this morning after plunging on the tech sell-off. AUD has the highest correlation in G10 with the Philadelphia Semiconductor index, meaning downside risks remain elevated in the near term if AI valuation concerns persist."

"Domestically, the picture for AUD remains strong, but is hardly relevant for near-term moves, considering the challenging external environment. Overnight, Australian headline inflation unexpectedly slowed from 4.2% to 4.0%, but the trimmed mean (the main core measure) accelerated from 3.4% to 3.6%."

"This second measure is what matters the most for the Reserve Bank of Australia. While we don’t expect another hike from the bank, this print should encourage a still hawkish tone in upcoming communication."

"We remain optimistic on an AUD/USD recovery well above 0.70 in the second half of the year on the back of strong AUD fundamentals and our dovish Fed call. But in the short term, downside risks persist. The pair is close to key supports at 0.690 and the 0.683 March low."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
When is the BoJ rate decision and how could it affect USD/JPY?The Bank of Japan (BoJ) will announce its interest rate decision between 03.30 and 05.00 GMT, followed by Governor Kazuo Ueda's press conference at 06.30 GMT.
Author  FXStreet
Dec 19, 2025
The Bank of Japan (BoJ) will announce its interest rate decision between 03.30 and 05.00 GMT, followed by Governor Kazuo Ueda's press conference at 06.30 GMT.
placeholder
Pi Network Price Annual Forecast: PI Heads Into a Volatile 2026 as Utility Questions Collide With Big UnlocksPi Network heads into 2026 after a 90%+ 2025 drawdown from $3.00, with 17.5 million KYC users and a smart-contract-focused Stellar v23 upgrade offering upside potential, but 1.21 billion tokens unlocking and heavy exchange deposits (437 million PI) keeping supply pressure and trust risks firmly in focus.
Author  Mitrade
Dec 19, 2025
Pi Network heads into 2026 after a 90%+ 2025 drawdown from $3.00, with 17.5 million KYC users and a smart-contract-focused Stellar v23 upgrade offering upside potential, but 1.21 billion tokens unlocking and heavy exchange deposits (437 million PI) keeping supply pressure and trust risks firmly in focus.
placeholder
Bitcoin options open interest hits $74.1B, topping futures volume for the first time: CheckonchainBitcoin options open interest hit $74.1B vs. $65.2B futures as BTC trades at $93,189; Checkonchain flags IBIT/Deribit concentration and a 15% hashrate drop.
Author  Mitrade
Jan 20, Tue
Bitcoin options open interest hit $74.1B vs. $65.2B futures as BTC trades at $93,189; Checkonchain flags IBIT/Deribit concentration and a 15% hashrate drop.
placeholder
Finding The Best Japan Stocks to Buy? These are Top Japanese Companies to Watch Discover the best Japanese stocks to buy, including AI semiconductor leaders, Buffett-backed trading houses, and undervalued Japan stocks benefiting from corporate reforms and yen trends.
Author  Mitrade
May 29, Fri
Discover the best Japanese stocks to buy, including AI semiconductor leaders, Buffett-backed trading houses, and undervalued Japan stocks benefiting from corporate reforms and yen trends.
placeholder
$4,050: Gold dives to fresh two-week low as Fed rate hike bets boost US DollarGold (XAU/USD) drifts lower for the second straight day – also marking the fifth day of a negative move in the previous six – and drops to a nearly two-week low during the Asian session on Wednesday.
Author  FXStreet
9 hours ago
Gold (XAU/USD) drifts lower for the second straight day – also marking the fifth day of a negative move in the previous six – and drops to a nearly two-week low during the Asian session on Wednesday.
goTop
quote