The Australian Dollar (AUD) sits just above the weekly open at 0.6620 into Friday against the US Dollar (USD) recovering early week losses from 0.6560 levels. The RBA left rates unchanged Tuesday at 4.35%, the AUD dropping post the release as the statement was seen as less hawkish than markets were expecting. The bank saying the path of interest rates will ensure inflation returns to target in a good timeframe, the RBA not ruling anything out. Inflation targets are projected to fall to 2.8% by late 2025 putting it bang on in their target zone of 2-3%. US Inflation next week should reflect a drop y/y from 3.5% to 3.4%, earlier year forecasts of 3.1% won’t eventuate. A retest of 0.6640 is close, a break above here would suggest bullish continuation.
The current interbank midrate is: AUDUSD 0.6616
The interbank range this week has been: AUDUSD 0.6556- 0.6643