The Australian dollar, paired with the US dollar, is observing the situation and is hardly moving on Wednesday. The current exchange rate for AUDUSD stands at 0.6613.
Stronger-than-expected US price statistics exerted pressure on all currencies except the US dollar. These data worsened the prospect of the US Federal Reserve initiating a phase of monetary policy easing in June.
However, there is no panic in the AUD either. Investors believe that despite the price reports, the Federal Reserve will soften monetary policy earlier than any of the major central banks.
Domestic statistics released earlier in Australia indicated a smaller-than-expected increase in the country’s GDP in Q4. This only confirms the likelihood that the Reserve Bank of Australia will initiate a mechanism to lower the cost of lending already this year.
Source: Roboforex
