Australian Dollar Skips a Beat on New RBA Governor Michele Bullock Appointment

Australian Dollar, AUD/USD, RBA Governor, Michele Bullock, S&P ASX 200 – Talking Points

• The Australian Dollar dipped a fraction after the new RBA Governor was announced
• Michele Bullock is seen as having excellent central bank pedigree
• RBA policy is likely to remain on course. Where to for AUD/USD?

The Australian Dollar eased after Australian Treasurer Jim Chalmers announced that Michele Bullock will take over as RBA Governor in September, replacing Mr Philip Lowe.

Australia’s S&P/ASX 200 equity index steadied to higher ground after a positive lead from Wall Street

Ms Bullock has been the Deputy Governor for the bank since April 2022 and has been with the institution since 1985. She has a reputation as a leading economist in her own right.

The implication for markets is that Australian monetary policy is likely to be managed in a similar fashion to way that it has been for several decades, and it represents a steady hand at the wheel.

Interest rate futures tilted to a less hawkish outlook earlier this week with the six month part the curve erasing 25 basis points of tightening.

Some monetary policy tourists in mainstream media have said that the bank has hiked rates unnecessarily. They might be disappointed with the new Governor if some of her recent comments reflect policy going forward.

AUD/USD INTRADAY CHART

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— Written by Daniel McCarthy, Strategist for DailyFX.com

Please contact Daniel via @DanMcCarthyFX on Twitter