AUD appears weak. Overview for 09.02.2024

The Australian dollar, paired with the US dollar, started declining again a couple of days after the RBA’s meeting. The current AUDUSD exchange rate stands at 0.6492.

So, the AUD has now dropped to its 12-week low against the US dollar. This development occurred within several days after the Reserve Bank of Australia meeting. Investors are still assessing the comments given by the CB’s manager.

Michele Bullock, the RBA’s chairperson, mentioned earlier that waiting until inflation dropped to 2.5% was unnecessary to begin decreasing the interest rate. In practice, the central bank is prepared to lower the loan cost, although the sentiment following its official meeting suggested otherwise.

The market is anticipating an interest rate reduction of 75 basis points this year.