AUDUSD is keeping its positive momentum thanks to the Reserve Bank of Australia.
The Australian Dollars keep on trying to recover against the USD. The current quote for the instrument is 0.7118.
Yesterday, the Reserve Bank of Australia raised the benchmark interest rate by 25 basis points, up to 0.35%. At the same time, it became known that the regulator would stop reinvesting in the assets to be repayable. It will help the RBA’s portfolio to reduce in the next quarters and bounce back later.
It’s interesting that investors are expecting more rate hikes until the end of 2022. They might support the Aussie, which is currently experiencing significant concerns due to the coronavirus outbreak in China.
Average market expectations imply a 40-point hike after the RBA’s June meeting and 2.5% by the end of 2022.
Another factor that pressures the Aussie is the USD, which remains extremely strong.