AUDUSD Analysis – December-25-2023
The AUDUSD pair is trading under $0.68, at its highest in five months. This is due to recent US economic data suggesting that the Federal Reserve may start reducing interest rates next year. At the same time, experts believe that the Reserve Bank of Australia (RBA) will take longer than other global banks to start reducing rates.
The RBA hasn’t raised rates as much as other banks, which could mean more minor or later cuts. Inflation in Australia has been more stubborn than in other countries. Last month, RBA Governor Michele Bullock said the problem is mainly domestic and driven by demand. She suggested that reducing inflation from around 5.5% to below 3% could take some time. The market doesn’t expect the RBA to cut rates until the end of 2024.