AUD/USD Analysis: Exchange Rate Holds at a 56-Month Low
As seen on the AUD/USD chart, yesterday the exchange rate fell below the level of 0.618 Australian dollars per 1 US dollar. The last time the Australian dollar was this weak was in April 2020, during the global spread of the coronavirus.
The decline followed the release of inflation data from Australia earlier this week. According to Bloomberg:
→ Overall annual inflation accelerated to 2.3%, up from 2.1% previously.
→ The trimmed mean core inflation (which smooths volatile items and is closely monitored by the Reserve Bank) slowed to 3.2%, down from 3.5%.
→ Traders are pricing in a 70% chance of a 25 basis point rate cut in February from the current 4.35% (a 13-year high).
TO VIEW THE FULL ANALYSIS, VISIT FXOPEN BLOG
Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
As seen on the AUD/USD chart, yesterday the exchange rate fell below the level of 0.618 Australian dollars per 1 US dollar. The last time the Australian dollar was this weak was in April 2020, during the global spread of the coronavirus.
The decline followed the release of inflation data from Australia earlier this week. According to Bloomberg:
→ Overall annual inflation accelerated to 2.3%, up from 2.1% previously.
→ The trimmed mean core inflation (which smooths volatile items and is closely monitored by the Reserve Bank) slowed to 3.2%, down from 3.5%.
→ Traders are pricing in a 70% chance of a 25 basis point rate cut in February from the current 4.35% (a 13-year high).
TO VIEW THE FULL ANALYSIS, VISIT FXOPEN BLOG
Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
