AUDUSD Fundamental Analysis – AUD Falls as RBA Holds Rates Steady

The Australian dollar took a sharp downturn, sliding below the $0.66 (AUDUSD) mark following the Reserve Bank of Australia’s (RBA) recent decision to maintain the cash rate at 4.35%.

The markets anticipated this move, yet the central bank’s lack of a strongly hawkish stance contributed to the currency’s decline. Since the last increase in November, the RBA has maintained this rate for four consecutive decisions.

AUD Falls as RBA Holds Rates Steady

Despite the stability in interest rates, the RBA faces challenges with stubbornly high inflation. The latest data revealed a slowdown in inflation to 3.6% in the first quarter from 4.1% previously, still overshooting the expected 3.4%.

Additionally, the monthly CPI indicator for March showed an unexpected increase to 3.5% from 3.4% in February, signaling persistent inflationary pressures that complicate the RBA’s monetary policy approach.

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Ethan O. Miller

Ethan O. Miller is a seasoned Forex analyst. His insightful articles offer a unique perspective on currency trends, aiding both novice and experienced traders in navigating the Forex market.

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