AUD/USD is hitting its lowest point in 11 months.
The Australian dollar is rapidly losing value against the US dollar this Tuesday. The present exchange rate for AUD/USD stands at 0.6324.
In today’s meeting, the Reserve Bank of Australia decided to keep the interest rate steady at 4.1% per annum. The RBA highlighted in its remarks that there might be a necessity for future tightening in monetary policy.
This represents the fourth consecutive occasion when the interest rate has remained unchanged, in line with expectations. A sudden shift in economic data would be required for the RBA to rapidly alter its position.
As emphasized by the RBA, monetary policy tightening might be warranted to ensure a timely return of inflation to the target. However, this decision will be contingent on upcoming statistical data and evolving risk evaluations.
Based on current predictions, the likelihood of an interest rate increase during the November meeting is less than 30%.
The decline in the AUD exchange rate can be attributed to the pressure from the US dollar and the disparity in interest rates.
The post The AUD Plummets: Overview for October 03, 2023 appeared first at R Blog – RoboForex.