The Aussie is weakening. Overview for 08.04.2022

08.04.2022

AUDUSD is falling under the attack of the “greenback” and amid the global risk appetite decline.

The Aussie continues falling against the USD. The current quote for the instrument is 0.7462.

The RBA Financial Stability Review published earlier today says that many Australian loaners are ready for the benchmark interest rate hike. According to the regulator, they are also ready for possible reductions in real estate prices. Moreover, the document mentions a quite high ratio between household debts and income – this aspect makes households more sensitive to a possible rate hike in the future. 

As for households, the RBA believes that their financial stability improved after the pandemic thanks to savings and a relatively stable situation with real estate prices. Many households managed to take out mortgages, so they don’t have to worry about the rate hike. 

The RBA says that the non-bank lending volume is rather low, about 5% of the total lending market. This fact reduces associated risks and threats to stability. 

It appears that the RBA lays the groundwork for the interest rate hikes. At the moment, it is collecting and analysing information, which will lead to conclusions to be used when making the rate decision. On the surface, it looks like everything is ready. 

Right now, the AUD is falling for at least two reasons. The first one is the strong “greenback”, which is currently in demand as a “safe haven” asset. The second reason lies in a technical correction of the asset after it updated its local highs. 

Attention!

Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.