FX News

AUD/USD Transfer

The Australian Dollar (AUD) climbed another leg higher earlier in the week reaching 0.6890 against the US Dollar (USD) the highest level since early September. The Federal Reserve hikes their cash rate this morning from 4.0% to 4.50% as widely predicted but with projections of further hikes on the radar. The Fed expects to raise to between 5.0% and 5.5% in 2023 even after a softer inflation read earlier in the week. US CPI y/y published at 7.1%, down on the 7.3% expected with declines in energy prices. Over the following months housing will be the determining factor as to whether it guides the economy clear of higher inflation or not. With higher mortgage rates expected to hit the pocket over the next few months this will no doubt strain consumer demand. Today’s Australian employment data prints and could offer further upside. Certainly, if we look at recent chart trends a retest of 0.7000 could be on the cards.

The current interbank midrate is: AUDUSD 0.6863
The interbank range this week has been: AUDUSD 0.6720- 0.6893

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