AUDUSD Analysis – December-21-2023

The Australian dollar remained around $0.675, the pair’s highest price in almost five months. This was due to softer views on the policies of the US Federal Reserve and the Bank of Japan. These views weakened the US dollar and the yen but boosted other significant currencies.

The Australian dollar became more valuable because the prices of goods increased. This occurred due to supply issues caused by attacks in the Red Sea and expectations of lower interest rates.

In Australia, the notes from the Reserve Bank’s recent meeting revealed their thoughts on raising rates again in December. However, they waited for more data as there were positive signs about inflation. The RBA noted that demand in the country slowed faster than they had anticipated and pointed out a faster inflation decrease in other countries.

AUDUSD Analysis – 4H Chart