AUD looks strong. Review for 13.06.2024

The Australian dollar is slightly correcting against the US dollar on Thursday, but it looks confident. The current AUDUSD exchange rate is 0.6647.

A sharp decline in the US dollar amid softer-than-expected May inflation data helped improve sentiment for other currencies.

The US Federal Reserve meeting ended neutrally yesterday, signalling only one rate cut this year, closer to December. That said, the dot plot of market forecasts now points to a rather aggressive reduction in borrowing costs in 2025.

The unemployment rate in Australia fell to 4.0% in May from the previous 4.1%, which is in line with expectations.

The Reserve Bank of Australia will hold a meeting next week. The interest rate is projected to remain at 4.35% per annum.