Australian dollar rally may fade as RBA slows rate hikes
Updated
Updated · Bloomberg · May 3
Australian dollar rally may fade as RBA slows rate hikes
10 articles · Updated · Bloomberg · May 3
Scotiabank says the Aussie, which closed at 72.02 US cents on Friday, is only modestly above short-term fair value of 69.4 cents.
Banco Santander expects it to trade below 72 cents after a widely anticipated RBA increase this week, with the central bank likely ending its hiking cycle next quarter.
Analysts say the currency will need tighter RBA policy to stay above current levels, while any rebound in the US dollar could add pressure.
Could a surprise in global events or RBA policy reignite the Australian dollar’s rally despite forecasts of a slowdown?
How might ongoing Middle East tensions and supply chain disruptions reshape the RBA’s policy path and the future of the AUD?
With inflation stubbornly high and household spending weak, is the RBA risking stagflation by slowing its rate hikes now?