The Australian economy is facing significant challenges due to the rising domestic interest rates, placing immense strain on its economic stability. Despite ongoing global economic uncertainties, Australia has been unable to evade the repercussions, leading to a continuous decline in the Australian dollar over the past five trading days. Despite the apparent stern stance of the Reserve Bank of Australia (RBA) in its policy, investors remain skeptical, providing minimal support to the Australian dollar. Many are unconvinced of the likelihood of an actual interest rate hike, with consensus suggesting that such a move is improbable until at least May, two years from now.
Recent trends in the AUD/USD pair indicate a potential bottoming out followed by a rebound. The Moving Average Convergence Divergence (MACD) has displayed a golden cross formation beneath the zero axis and is now trending towards the 48-hour moving average. However, the future trajectory of the Australian dollar remains contingent on the upcoming US Consumer Price Index (CPI) data for October. Should the data bolster the US dollar, it is anticipated that the Australian dollar will continue its downward trajectory.
Recent trends in the AUD/USD pair indicate a potential bottoming out followed by a rebound. The Moving Average Convergence Divergence (MACD) has displayed a golden cross formation beneath the zero axis and is now trending towards the 48-hour moving average. However, the future trajectory of the Australian dollar remains contingent on the upcoming US Consumer Price Index (CPI) data for October. Should the data bolster the US dollar, it is anticipated that the Australian dollar will continue its downward trajectory.
