Short the Australian dollar is crowded trade at the moment
Short the Australian dollar is crowded trade at the moment
Data showed that Australia’s monthly CPI indicator stood at 3.4% in February 2024, unchanged from the previous two months and missing forecasts for a slight increase to 3.5%.
Last week, the Reserve Bank of Australia kept its cash rate at a 12-year high of 4.35%, pausing rates for the third straight meeting.
Australia might lower rates earlier than the US, due to a weaker data Vs the US. The AUD/USD pair is expected to remain in a bearish bias sentiment
Externally, the US dollar strengthened on growing expectations that US rates could remain higher for longer even as other major economies start easing policy.
Data showed that Australia’s monthly CPI indicator stood at 3.4% in February 2024, unchanged from the previous two months and missing forecasts for a slight increase to 3.5%.
Last week, the Reserve Bank of Australia kept its cash rate at a 12-year high of 4.35%, pausing rates for the third straight meeting.
Australia might lower rates earlier than the US, due to a weaker data Vs the US. The AUD/USD pair is expected to remain in a bearish bias sentiment
Externally, the US dollar strengthened on growing expectations that US rates could remain higher for longer even as other major economies start easing policy.