The Australian dollar is losing ground against the US dollar on Tuesday, with the current AUD/USD exchange rate at 0.6437.
The AUD/USD pair is declining amid a deteriorating market sentiment.
At its November meeting, the Reserve Bank of Australia decided to raise the interest rate to 4.35% per annum from the previous 4.10%. In its comments, the RBA noted long-term inflation concerns. This decision was not surprising for investors. Firstly, the regulator has been transparent about its monetary stance, repeatedly stating that it will increase the borrowing cost. Secondly, it relies on clear signals that are also evident in the market.
According to the RBA, it will consider the latest statistics and make decisions based on the data in the future.
Today, the Aussie is under pressure not just from the central bank’s moderate stance but also from the increased risk aversion in the stock market.
The post AUD/USD Pair Falls Amid Deteriorating Market Sentiment: Overview for November 07, 2023 appeared first at R Blog – RoboForex.