The Australian dollar held below $0.69 after the Reserve Bank of Australia raised its policy rate by 50 basis points in a widely expected move and refused to offer a more hawkish forward guidance that some had hoped for. RBA Governor Philip Lowe indicated the board’s commitment to doing what is necessary to bring down inflation and said the “size and timing of future interest rate increases will be guided by the incoming data.” Meanwhile, analysts pointed out that the statement appears to confirm that the board only debated either a 50 or 25 basis point increase, and not the 75 bps that some speculations suggested. The aussie also hovered near its lowest levels in two years as commodity currencies came under pressure from the Federal Reserve’s aggressive tightening plans and an escalating risk of a global recession.
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 July of 2022.
The Australian Dollar is expected to trade at 0.67 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 0.64 in 12 months time.