The Australian dollar traded around $0.69, holding close to its lowest levels in two years, dragged lower by softer commodity prices amid growing fears about a looming slowdown in the global economy. There are also hints that the Australian economy is cooling with house prices slipping and consumer sentiment in a deep hole. Meanwhile, the Reserve Bank of Australia surprised markets with a larger-than-expected 50 basis point rate hike to 0.85% at its June meeting, citing accelerating consumer prices and a resilient economy for its decision and committing itself to “doing what is necessary” to rein in surging inflation. RBA Governor Philip Lowe recently flagged more tightening ahead as rates were still ”very low” and as he sees inflation hitting 7% by year-end, but downplayed the chance of a super-sized 75 bps rate increase.
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 June of 2022.
The Australian Dollar is expected to trade at 0.68 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 0.65 in 12 months time.