The RBA Hiked Rates and the Australian Dollar Still Fell
AUD/USD fell after the RBA rate hike because the central bank's hawkish stance was already priced in while the U.S. dollar stayed firm.
Written by
Fawad Razaqzada
Market Analyst
AUD/USD fell after the RBA rate hike because the central bank's hawkish stance was already priced in while the U.S. dollar stayed firm.
Fawad Razaqzada, StoneX Media Market Analyst, breaks down the RBA decision, U.S. dollar strength and the AUD/USD technical picture.
The Reserve Bank of Australia raised rates by 25 basis points and left the door open to a fourth-quarter hike, putting Australian inflation data in focus. The U.S. dollar held firm despite weak job openings and consumer confidence data, with core PCE and nonfarm payrolls ahead, while AUD/USD slipped below its 200-day moving average.
This content was created by an affiliate of FOREX.com and represents the views and opinions of the author/speakers, not the views and opinions of FOREX.com, StoneX Group Inc., or its subsidiaries. The content has not been independently reviewed by FOREX.com.
Related tags:
Latest market news
Web Trader platform
Our sophisticated web-based platform is packed with features.
Open an account today
Experience award-winning platforms with fast and secure execution.
Economic calendar
Related articles
Gold and S&P 500 analysis: What now after Warsh’s hawkish speech?
The dollar surged across the board after the Fed Chair Kevin Warsh surprised with a hawkish-leaning speech at the Jackson Hole summit. All the bearish dollar bets that had been accumulated since last Friday on the back of data weakness and bond market troubles had to be squared and that triggered a short squeeze rally for the dollar. Gold and silver dropped, as a result, as too did bitcoin, while US indices were giving back earlier gains.
EUR/USD forecast: All eyes on Warsh at Jackson Hole - Forex Friday
For much of this week, the EUR/USD has been edging lower with the US dollar regaining some ground after last week’s sell-off that was triggered, in part, by the bond market worries. Investors have been unwilling to bet further against the US dollar so far this week ahead of Kevin Warsh’s keynote speech at the Jackson Hole summit, due later today.
Nasdaq 100 forecast: Tech stocks shine as Nvidia results underpin AI trade
Much of this week’s attention has been on Nvidia’s earnings, and the chipmaker delivered the sort of numbers of investors had been hoping for. US index futures initially wobbled before moving higher overnight, with the results providing a fresh lift to the AI trade