Bearish
AUD/USD drops to $0.6946 as inflation data reduces rate hike expectations
The Australian dollar declined by 0.4% to $0.6946 following June-quarter core inflation data that came in below forecasts. This led investors to significantly reduce expectations for a near-term interest rate increase by the Reserve Bank of Australia.
Key points
- June-quarter core inflation data below forecasts reduces rate hike expectations.
- Markets now imply just a 2% probability of a rate increase at the RBA's next meeting on August 11.
- Only 11 basis points of tightening are priced in by December, down from 21 basis points previously.
- Major resistance lies at a recent top of $0.7026, with support at $0.6913.
Sources
AI-generated from public news sources. Not financial advice.
