AUD/USD Correction Pauses.
The Australian dollar has halted its decline against the US dollar, with the current AUD/USD exchange rate at 0.6829.
The recent minutes of the Reserve Bank of Australia’s meeting did not provide any clear indications. The current monetary policy remains restrictive, and the Central Bank is prepared to continue this approach for as long as necessary. The Reserve Bank of Australia will base its decision on further interest rate hikes on incoming data.
According to the Central Bank’s forecasts, inflation is expected to slow down, as the economic system has already decelerated its growth pace.
The Australian dollar’s reaction to these conclusions has been neutral, as this information was largely known beforehand.
However, the AUD faces some downside risks due to signals emanating from China. Controversial statistics released yesterday have exerted pressure on the AUD. Today, investors are cautiously monitoring developments surrounding Evergrande, a major player in China’s real estate sector, as the company reported poor quarterly results.
