Weekly Roundup: Australian dollar softens amid declining RBA bets

Tom Brown May 22nd 2023 - < 1 minute read

The Australian dollar initially rose last week as a bullish market mood increased the risk-sensitive currency’s appeal.

However, AUD quickly retraced its steps following the latest meeting minutes from the Reserve Bank of Australia (RBA). The RBA sounded less hawkish than investors were expecting, with policymakers discussing easing inflation and concerns about slow productivity growth.

A surprise rise in Australian unemployment dented AUD in the latter part of the week, although an improving market mood helped the ‘Aussie’ claw back some of these losses.

Looking ahead, Australia’s latest PMI surveys could see AUD exchange rates soften. Forecasters expect a slowdown in private sector activity.

Aside from the PMIs, risk appetite is likely to drive AUD movement. Could a bullish run in markets see the ‘Aussie’ dollar strengthen?

Written by
Tom Brown

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