AUD/USD - Risk as markets price in possible RBA rate hike
The minutes from the Reserve Bank of Australia (RBA) showed the Board was leaning towards a rate hike of 50bps and dismissing the idea of a pause in rate hikes. Markets expect the bank to raise rates by 24bps at their next meeting and reach a terminal rate of 4.28%.
The RBA's recent decision and data regarding the Wage Price Index will likely affect the Australian dollar.
The 50bps rate hike anticipated by the RBA will likely put pressure on the AUD, but the actual rate increase could be lessened by weaker-than-expected data from the Wage Price Index. The higher terminal rate of 4.28% could also put further downward pressure on the AUD. Overall, the RBA's actions and the upcoming Wage Price Index data are likely to impact the direction of the AUD.
(As written on 21 February 2023)
I forgot to post last night
The RBA's recent decision and data regarding the Wage Price Index will likely affect the Australian dollar.
The 50bps rate hike anticipated by the RBA will likely put pressure on the AUD, but the actual rate increase could be lessened by weaker-than-expected data from the Wage Price Index. The higher terminal rate of 4.28% could also put further downward pressure on the AUD. Overall, the RBA's actions and the upcoming Wage Price Index data are likely to impact the direction of the AUD.
(As written on 21 February 2023)
I forgot to post last night
Trade closed: target reached