AUD has risen significantly. Overview for 27.12.2023

The Australian dollar paired with the US dollar is actively on the rise. The current AUDUSD exchange rate stands at 0.6837.

The current prices represent a new five-month high.

The market is delighted that the cooling of US inflation has bolstered expectations for monetary easing in 2024. Such forecasts have driven up commodity prices, providing additional positive momentum to Australia’s resource-intensive sectors, including the manufacturing industry, with the Aussie capitalising on this favourable environment.

The Reserve Bank of Australia will likely follow the lead of the world’s central banks with a series of rate cuts. Unlike others, the RBA did not hike the rate aggressively. Its approach will probably involve smaller and later reductions.

Inflation in Australia has proven to be more resistant to monetary measures than in other countries. According to the RBA, the CPI will take a considerable amount of time to decrease from 5.5% to 3.0%.