Send Currency Update Published on May 6th 2024

In The News 🌏 Market Conditions and What to look out for this week 🗓️

Speculation on RBA Rate Hike:

Capital Economics is forecasting a 25 basis points rate hike, citing stickier and stronger inflation than expected by the Reserve Bank of Australia (RBA).

The RBA has historically increased interest rates when the trimmed mean quarterly inflation has been at least 1 percent, which was the case in the March quarter.

The AUD struggled against all of the major currencies in the last week. The factors driving this downward trend include rising oil and commodity prices which seem to have put the investors into a risk-averse mode. There seems to be a rush for safe-haven currencies which is hitting the value of all risk-sensitive currencies like the AUD.