AUD grows gradually. Overview for 19.09.2023

The Australian dollar, paired with the US dollar, is on its way to recovery. The current AUDUSD exchange rate stands at 0.6437.

This morning, the minutes of the previous RBA’s meeting were published. It is mentioned in the document that the Reserve Bank of Australia considered a new hike in the interest rate by 25 basis points in September before making a pause. The RBA finds that it needs more time to collect data and evaluate the effect that previous interest rate increases had on the economy. As risks, the RBA views poor growth of production and high inflation of service prices. Both these parameters propel interest rate hikes in the future.

The Australian economy might slow down additionally due to weak domestic demand and high levels of uncertainty in China, which is Australia’s main trade and economic partner.

Investors in Aussie are extremely cautious. Important decisions of the US Federal Reserve and the Bank of England are coming. The market is getting ready for high volatility.