AUD continues to surge. Overview for 29.11.2023

The Australian dollar, paired with the US dollar, continues to rise. The current AUDUSD exchange rate stands at 0.6650.

Inflation is slowing in Australia, supporting the scenario of the Reserve Bank of Australia refraining from further interest rate hikes. Market expectations for a rate hike have decreased from 70% to 50%.

Today’s statistics show a decrease in the country’s consumer price index to 4.9% annually, down from the previous figure of 5.6%. The forecast had anticipated a contraction to 5.2%.

The RBA already held a meeting this month, at which it raised the interest rate to 4.35% per annum, marking a 12-year high.

In addition to the inflationary aspect, the AUD benefits from the substantial weakening of the US dollar.