• AUD/USD to struggle to gain ground as RBA might slow the speed of its rate hikes – Commerzbank

Market news

23 August 2022

AUD/USD to struggle to gain ground as RBA might slow the speed of its rate hikes – Commerzbank

AUD/USD is falling sharply after barricades around 0.6900. Economists at Commerzbank believe that the aussie is unlikely to enjoy gains ahead.

Reserve Bank of Australia might slow the speed of its rate hikes

“In early August the RBA had hiked its key rate by 50bp to now 1.85%. It signalled further rate hikes but will take its decisions one by one. In the meantime, the unemployment rate has fallen further, to now 3.4% in July. Moreover, wage costs rose by 2.6% in Q2. On the other hand, growth prospects for China and the global economy have deteriorated.”

“I assume that the RBA will remain on its restrictive course but might slow the speed of its rate hikes. That might make it more difficult for AUD to gain ground against the US dollar.”

 

Market Focus
Material posted here is solely for information purposes and reliance on this may lead to losses. Past performances are not a reliable indicator of future results. Please read our full disclaimer
Open Demo Account & Personal Page
I understand and accept the Privacy Policy and agree to my name and contact details being used by TeleTrade to contact me about this.