AUD/USD might fall significantly to 2020 lowe
Australian inflation surpassed estimates in the third quarter, reaching a 32-year high, and the Reserve Bank is expected to raise interest rates again to battle inflationary pressures.
Rising rent and fuel prices were the primary causes of the reading being higher than expected, as Australia grappled with high borrowing rates and rising commodity prices. Food costs rose dramatically throughout the quarter due to a mix of supply chain issues and harvest-related adverse weather.
According to the bank, it's trying to find a balance between limiting the negative consequences of high interest rates on the economy and controlling inflation. It hiked rates seven times this year from record lows and declared that future rate hikes will be data-driven.
The pressure on AUD/USD is expected to continue. In light of this, Credit Suisse economists predict that the pair may plunge to a 2020 low of 0.5506.
A steeper decrease in the AUD/USD exchange rate is anticipated.
We anticipate a decline to the bottom from April 2020 at 0.6041/5978 and the 78.6% retracement of the 2020/21 upswing as long as medium-term momentum continues to be bearish. While another little halt is possible, a convincing break lower would increase the likelihood of a fall all the way to 0.5506, the 2020 bottom.
"Any effort at a stronger move higher should be restrained at the sliding 55-day average of 0.6651."
Rising rent and fuel prices were the primary causes of the reading being higher than expected, as Australia grappled with high borrowing rates and rising commodity prices. Food costs rose dramatically throughout the quarter due to a mix of supply chain issues and harvest-related adverse weather.
According to the bank, it's trying to find a balance between limiting the negative consequences of high interest rates on the economy and controlling inflation. It hiked rates seven times this year from record lows and declared that future rate hikes will be data-driven.
The pressure on AUD/USD is expected to continue. In light of this, Credit Suisse economists predict that the pair may plunge to a 2020 low of 0.5506.
A steeper decrease in the AUD/USD exchange rate is anticipated.
We anticipate a decline to the bottom from April 2020 at 0.6041/5978 and the 78.6% retracement of the 2020/21 upswing as long as medium-term momentum continues to be bearish. While another little halt is possible, a convincing break lower would increase the likelihood of a fall all the way to 0.5506, the 2020 bottom.
"Any effort at a stronger move higher should be restrained at the sliding 55-day average of 0.6651."