AUDUSD Drops – Interest Rates and Inflation Update

AUDUSD Analysis – The Australian dollar fell below $0.655, dropping quickly from its one-week high. This happened as the US dollar grew stronger because people thought interest rates in the US might stay high for a while. This is different from other big economies where rates might start to decrease. In Australia, people are waiting for the latest inflation numbers this week. They’re looking for signs about what will happen next with interest rates.

Last week, the Reserve Bank of Australia kept its primary interest rate at the highest level in 12 years, 4.35%, and didn’t change it for the third time. But, the RBA also stopped saying that they might raise rates again, which shows they think inflation will decrease. This has made some believe that the RBA might lower rates later in the year.

AUDUSD Drops – Interest Rates and Inflation Update