AUDUSD Analysis – February-27-2024

AUDUSD Analysis – The Australian dollar fell below $0.656, drifting from its three-week peak as market players grew cautious before a critical domestic inflation report. This report might impact the Reserve Bank of Australia’s (RBA) upcoming policy moves. Expected inflation in Australia for January is slightly higher at 3.5%, up from December’s 3.4%. However, a higher-than-expected inflation rate could prompt renewed speculation of an additional interest rate rise by the RBA.

In the previous week, records from the RBA’s latest meeting revealed that while officials considered a rate hike during their February meeting, they chose to keep the current monetary policy unchanged due to early signs of slowing inflation. Moreover, the RBA mentioned needing more evidence to ensure inflation is on a downward trend before dismissing the possibility of further rate increases.

AUDUSD Analysis