AUDUSD Analysis – January-8-2024
The Australian dollar has dropped to its lowest in almost three weeks, now under $0.67. This decline is due to the strengthening of the US dollar. Investors are rethinking their expectations of Federal Reserve rate cuts. The Fed’s recent minutes show uncertainty about future policies. Meanwhile, US employment data remains strong.
In Australia, experts believe the Reserve Bank will be slower to reduce rates compared to other countries. This is because it hasn’t raised rates as much. Australian inflation is also more stubborn, mainly driven by domestic demand. RBA Governor Michele Bullock highlights this as a growing challenge.