The Australian Dollar continues to plunge. Overview for 05.10.2022

The Australian Dollar is still rather weak against the USD. The current quote for the instrument is 0.6496.

Yesterday, the Reserve bank of Australia announced a 25-point rate hike, up to 2.60%, which was a bit different from what market players expected. They believed the RBA would continue its “hawkish” policy and raise the rate by 50 basis points for the fifth time in a row.

However, the regulator’s comments that followed later remains “hawkish” and they helped the Aussie a little bit.

The RBA said that the rate would be increased in the future because the regulator’s key priority was still to take control over inflation.

Signals showing the actual state of things in the Australian economy are quite positive.

For example, the Building Approvals report showed a 28.1% m/m increase in August after a 18.2% m/m decline the month before. The expected reading was 10.2% m/m.

The AIG Manufacturing Index recovered in August, up to 50.2 points, after being 49.3 points in July. It’s good news for the Aussie.