The Australian Dollar (AUD) retreated to a new November 2022 low of 0.6565 this week against the US Dollar (USD) plunging from around 0.6750 earlier in the week. The Reserve Bank of Australia raised rates from 3.35% to 3.60% as expected with Governor Lowe suggesting they are close to coming to a close on their tightening policy and pausing on further hikes. However more hikes will be needed over the coming months, perhaps only the one instead of two to ensure inflation does indeed start to track lower. In line with this dovish hike were comments from Fed chairman Powell suggesting the opposite may be on the horizon with further hikes above recent estimates and a new upper range of 5.5% to 5.75% possible. This mood should keep the cross on the down slopes for a while until central bank speak changes.
The current interbank midrate is: AUDUSD 0.6600
The interbank range this week has been: AUDUSD 0.6566- 0.6768