AUDUSD Analysis – March-13-2024

AUDUSD Analysis – The Australian dollar is currently not performing well and is priced at around $0.66. This is mainly because recent US inflation rates were unexpectedly high, making it difficult to predict when the US Federal Reserve will lower interest rates.

Even so, there’s hope because many believe the US will start to reduce its rates before other significant global banks. This expectation keeps the Australian dollar somewhat steady.

AUDUSD Analysis 4-Hour Chart

Economic Growth and Interest Rate Speculations in Australia

In Australia, the recent reports weren’t very positive, showing slower economic growth than anticipated in the last quarter. This has led people to think that the Australian central bank, known as the Reserve Bank of Australia (RBA), might lower interest rates sooner, possibly within this year.

The financial markets are almost inevitable, with a 90% probability that the RBA will decrease its rates starting in August. They’re expecting a total reduction of 45 basis points for the year.

Future Predictions for Australia’s Financial Strategies

After analyzing Australia’s economy’s poor performance, the Commonwealth Bank of Australia has adjusted its forecasts. It now expects the RBA to cut interest rates by 75 basis points throughout the year. This adjustment is based on recent weak economic data and the aim to boost economic growth. This change is significant as it reflects a response to the current economic conditions and aims to support the Australian economy.