AUDUSD Dips Amid Weak Inflation Data

AUDUSD Analysis – The value of the Australian dollar dropped to about $0.653, staying near its lowest point in three weeks. This drop resulted from weaker-than-expected local inflation numbers, which pressured the currency. The latest data revealed that Australia’s inflation rate for February 2024 was 3.4%, the same as the last two months and slightly below the predicted rise to 3.5%. Additionally, there was a smaller-than-anticipated increase in retail sales for February.

AUDUSD Dips Amid Weak Inflation Data

Just last week, the Reserve Bank of Australia decided to keep the interest rate steady at 4.35%, a peak not seen in 12 years, making this the third consecutive time it has done so. However, the RBA removed its earlier caution about the possibility of another rate hike, showing it believes inflation will keep dropping.

This move has led people to speculate that rate cuts might be on the horizon later in the year. On the global stage, the US dollar grew stronger amid expectations that interest rates in the US might stay elevated for a more extended period compared to other significant economies beginning to relax their policies.