Weekly Roundup: Australian dollar stumbles as RBA leaves rates unchanged

Currencies Direct December 11th 2023 - < 1 minute read

After briefly spiking at the start of the week following higher-than-forecast inflation data, the Australian dollar then started to decline.

The Reserve Bank of Australia (RBA) left interest rates unchanged at its meeting. Although the bank struck a hawkish chord regarding future hikes, markets became increasingly convinced that the RBA’s hiking cycle is over.

This saw the ‘Aussie’ tumble, although it was able to recover against its weaker peers by the end of the week thanks to a recovery in Australian exports.

So far this week, AUD exchange rates have stumbled after China slipped further into deflation territory last month.

Looking ahead, Australia’s latest jobs data could dent AUD later in the week. An expected uptick in the unemployment rate could dampen demand for the ‘Aussie’.

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Currencies Direct

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