It’s been a slow start to 2024 as always with thin liquidity and a US holiday thrown in. The Australian Dollar (AUD) started 2024 around 0.6800 and has eased back to 0.6650 this morning. Speak of rate cuts could continue to weigh on the AUD with experts forecasting the Reserve Bank of Australia may cut interest rates by August this year. Last week’s inflation figures dropped to 4.3% in November down from 4.9% in October showing an improvement in the right direction. No change from 4.35% is predicted in their February meeting but if inflation continues to trend lower we may see the RBA cut earlier than August. Poor recent Chinese data is also not doing the AUD any favours however we believe the cross should stay above 0.6640 in this little move lower.
Current Level: 0.6660
Last week’s range: 0.6645 – 0.6733