AUD interests the bears. Overview for 05.09.2023
The Australian dollar paired with the US dollar is losing weight on Tuesday. The current AUDUSD exchange rate stands at 0.6424.
The Reserve Bank of Australia, in its recent meeting, kept the interest rate unchanged at 4.1% per annum. This is the third consecutive meeting where the rate has remained stable. Markets are confident that there are no grounds for an increase.
From a fundamental perspective, the situation for the Australian dollar is somewhat ambiguous. The fact is that the RBA’s rate is currently lower than that of many other major central banks. The negative difference in the cost of credit is a significant obstacle to the AUD, preventing it from strengthening against major currencies. Recent positive news from China, indicating the potential for interest rate cuts in China for mortgage loans, reduces the likelihood of a substantial drop in the AUD. At the same time, there is still considerable pressure coming from the USD.
Consequently, the Aussie is holding moderately lower, but with hope for future stabilisation.
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboMarkets bears no responsibility for trading results based on trading opinions described in these analytical reviews.
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