Australian Dollar Falls as RBA Holds Rates

AUDUSD Analysis – The Australian dollar dipped to just above $0.65, hitting its two-week low after the Reserve Bank of Australia decided to keep interest rates unchanged, a move many had anticipated. Nonetheless, the tone this time was less stern than in past updates. On March 19th, the RBA maintained the rate at 4.35%, the highest in 12 years, marking the third time without changes.

Moreover, the bank removed its earlier caution about the possibility of future increases, suggesting it believes inflation will gradually decrease. This change hints they might reduce rates later in the year. Meanwhile, the Bank of Japan has stepped away from its negative interest rates and stopped managing its yield curve. As a result, investors are now turning their attention to the upcoming decision by the US Federal Reserve for more clues.

Australian Dollar Falls as RBA Holds Rates