The Australian dollar fell below $0.71, retreating from two-month highs reached last week, weighed down by weak economic data from major trading partner China and hawkish remarks from US Federal Reserve policymakers. The aussie staged a significant run-up since mid-July amid speculations that other major central banks would catch up to the Fed’s tightening cycle, but comments from Fed officials indicating readiness to raise rates further to clamp down inflation prompted markets to reassess those expectations. The Reserve Bank of Australia raised its policy rate for the fourth straight month in July but tempered guidance on future hikes amid expectations of a slowdown in the economy. RBA Governor Philip Lowe said that the process of normalizing monetary conditions is not on a pre-set path, walking back previous statements that the central bank is intent on bringing rates to a “neutral” level of at least 2.5%.
Historically, the Australian Dollar reached an all time high of 1.49 in December of 1973. Australian Dollar - data, forecasts, historical chart - was last updated on August of 2022.
The Australian Dollar is expected to trade at 0.70 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 0.67 in 12 months time.