The AUD/USD pair fell after the Reserve Bank of Australia (RBA) abandoned its hawkish bias. BBH economists analyze the pair's prospects.
The RBA maintained the interest rate target at 4.35%
The Reserve Bank of Australia (RBA) kept the interest rate target at 4.35% (no surprises), but unexpectedly abandoned its restrictive bias. The RBA changed its policy orientation, going from warning that “a further increase in interest rates cannot be ruled out” to “the Council is not ruling out anything.” Consequently, the tone of the RBA statement was more cautious, noting that wage growth “appears to have peaked” and that “household consumption growth remains particularly weak amid high inflation and rising prices.” interest rates”.
The AUD/USD pair may break below its February low (0.6443) if, as we expect, the Fed becomes less dovish on Wednesday.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
