FX News

AUD/USD Transfer

It’s not looking too pleasant out there for US Dollar (USD) buyers with the Australian Dollar (AUD) depreciating another week clocking 0.6570 on its way to a fresh May 2020 low. The Federal Reserve hiked its cash rate by 75 points to 3.25% for the second time running as they continue with an aggressive tightening cycle to try and curb rising inflation. Fed chair Powell saying there will be more economic pain before inflation is back on target with a likely recession over the next 12 months. We expect a further hike of 75 points at their November meeting and another 50 points in December. Bottom line- as long as the Fed keeps raising rates and creating more uncertainty and a “flight to safety” risk outlook over the next few months, we could see more downside moves eventuate in the pair.

The current interbank midrate is: AUDUSD 0.6647
The interbank range this week has been: AUDUSD 0.6573- 0.6747

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