The value of the AUD/USD currency pair fell to $0.631 this Wednesday, its lowest level in more than a year, as market players anticipated the US Federal Reserve’s next moves.
The Fed is expected to reduce its key interest rate by 0.25% today, but hints suggest that due to ongoing high inflation, there might be fewer rate cuts next year than previously thought.
RBA Holds Rate Amid Economic Slowdown
In Australia, investors are also looking for insights from the Reserve Bank of Australia’s recent meeting, in which it decided to maintain its rate at 4.35%. With new data indicating a slowdown in the economy, expectations have shifted, predicting an earlier rate decrease by the RBA.
- Also read: EURUSD Near 2-Year Low Despite Sector Gains.
This week’s survey also showed a decline in Australian consumer confidence for December, reflecting growing concerns about the economic future.