The post Australian Dollar plunges after RBA decision, US CPI looms appeared on BitcoinEthereumNews.com.

AUD/USD declines by 0.82% to 0.6395 on Tuesday. The RBA’s less hawkish interest rate guidance weighs heavily on the Aussie. Michele Bullock, RBA Governor, remains slightly confident that inflation will return to the bank’s 2% target. The AUD/USD pair fell sharply below 0.6400 on Tuesday, declining by 0.82% to 0.6395 after the Reserve Bank of Australia (RBA) delivered less hawkish interest rate guidance. RBA Governor Michele Bullock expressed confidence that inflation risks had eased but not disappeared. She noted that the decision to cut interest rates in the upcoming February meeting would be data-dependent, but she was confident that wages and demand were slowing.  Investors are now waiting for US inflation data and Australian employment data, both of which could influence the Aussie’s direction in the coming days. Meanwhile, the market remains under selling pressure as expectations grow for a less dovish RBA. Analysts at ANZ and Westpac predict that the RBA could start reducing interest rates by May 2025. Daily digest market movers: Aussie down as markets assess less hawkish RBA tone The Aussie remains under severe selling pressure as markets bet on a less dovish RBA stance. Michele Bullock, RBA Governor, expressed slight confidence in inflation returning to the bank’s target of 2%.  When asked about whether the RBA will cut interest rates in February, Bullock said the decision would be data-dependent with a focus on slowing wages and demand. Before the RBA’s policy decision, analysts at ANZ and Westpac predicted that the RBA may begin reducing interest rates beginning in May 2025. This week, investors should brace for more volatility in the Australian Dollar, as the domestic employment data for November is scheduled to be released on Thursday. Meanwhile, the US Dollar rises ahead of the November US Consumer Price Index data, which will be released on…

---

Filed under: News - @ December 10, 2024 10:20 pm