The Australian dollar is plummeting against the US dollar on Friday. The current exchange rate for AUDUSD stands at 0.6592.
The Aussie has come under pressure from the strengthening US dollar. The US currency gained strength after relatively strong reports on the US economy appeared on the market. These reports reduced the likelihood that the Federal Reserve would decide to lower the interest rate.
Everything, in one way or another, revolves around the cost of borrowing. Until ultimate clarity is achieved, the market will be subject to extreme volatility.
The Reserve Bank of Australia presented its recent meeting minutes, noting that monetary policymakers were ready to consider raising the interest rate at the May meeting. However, they ultimately decided to leave monetary policy unchanged.
Today’s statistics revealed a significant decline in inflation expectations in Australia, reaching 4.1%, the lowest level since October 2021.
Source: Roboforex
