Andrey Goilov | Mar 27, 2024 05:19AM ET
The AUD/USD pair is declining, reaching 0.6539 on Wednesday. The Australian dollar is heading back to a three-week low following the release of softer-than-expected consumer price index (CPI) data from Australia.
For February 2024, inflation in Australia stood at 3.4%, unchanged from the previous report, in contrast to the anticipated slight increase to 3.5%. This marks the lowest inflation level since November 2021.
Last week, the Reserve Bank of Australia (RBA) held its meeting and decided to keep the interest rate unchanged at 4.35% annually. The rate remains at a 12-year peak, unchanged for the third consecutive meeting. The RBA’s stance has slightly shifted; the regulator no longer indicates further rate hikes, confident that inflation will ease pressure. This opens the possibility of rate reductions later in the year.
The US dollar is strengthening today amid growing expectations that the Federal Reserve will maintain interest rates high for an extended period. This contrasts with forecasts of monetary policy easing by other central banks, some of which could occur before the Fed’s actions.
Technical Analysis of AUD/USD
By RoboForex Analytical Department
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