AUD/USD Continuing Its Correction Path
The Australian dollar has found stability against the US dollar as August comes to a close, following a 3% pullback. The current AUD/USD exchange rate stands at 0.6479.
The recent weakening of the US dollar has worked in favor of the Aussie. Recent economic data from the US has boosted investor confidence that the Federal Reserve is unlikely to proceed with further interest rate hikes, as the economy may not be ready for them. Consequently, the USD has declined, and the AUD has rebounded.
However, the Aussie experienced a more than 3% loss in value over August. Market participants interpreted the easing of domestic inflationary pressures as a signal that the Reserve Bank of Australia (RBA) is likely to maintain its interest rate at 4.1%. The next meeting of the Australian regulator is scheduled for September.
The RBA previously stated that it needed more time to objectively assess the impact of the previous rate hikes on the economy.
The Australian Dollar (AUD) remains influenced by two factors related to China: signs of economic weakness in China and the hesitation among Chinese regulators regarding stimulus measures.
The post Aussie Holding Steady – Overview for August 31, 2023 appeared first at R Blog – RoboForex.
