Skip to content 
by The Australian dollar has climbed past the $0.65 mark, returning from a recent low point. This increase is primarily due to the US dollar’s lack of performance. Meanwhile, investors are paying attention to new reports about Australia’s economy.
Although Australia’s economic growth in the last quarter of the year didn’t meet expectations, this situation might lead to easier financial conditions set by Australia’s central bank.
AUDUSD Fundamental Analysis 4-Hour Chart
Economic Growth in Australia Slows Down
Australia’s economy grew less than anticipated in the last part of the year. This slow growth suggests the Reserve Bank of Australia might start making it easier for people to borrow money, which is known as adopting an easing bias. During their last February meeting, the country’s policymakers talked about whether they should increase interest rates.
However, they decided to keep things as they were for now because inflation, or the rate at which prices rise, appears to be slowing down.
Future Monetary Policy and Predictions
The Commonwealth Bank of Australia has shared its predictions following the disappointing economic growth figures. They anticipate the central bank will reduce interest rates by 75 basis points annually. This would make loans cheaper and could help stimulate the economy.
This forecast is based on the recent weaker-than-expected economic performance and the ongoing discussion among policymakers regarding the country’s financial direction.
About The Author
