AUD/USD Weakens as Odds for RBA Rate Cut Climb Higher

The Australian dollar has slipped against the US dollar after the RBA hinted at the need for another rate cut, as soon as February 2020, in case the economic growth continues to remain under pressure over weak outlook for household incomes and employment. At the time of writing, AUD/USD is trading at around 0.686.

The Australian dollar lost around 0.2% of its value a day after the Australian government lowered its outlook for economic growth into 2020 on the back of slowdown in wage growth and anemic household spending. The government also revised its estimates for unemployment higher from 5.0% to 5.25% in more worrying signs for the economy.

The RBA’s most recent monetary policy meeting indicates rising concerns about the weak wage growth and its potential impact on inflation and domestic consumption, which continue to remain weak and hold back Australia’s GDP growth. The mid-year budget update also anticipates this fiscal year’s budget surplus to come in lower at AUD 5 billion.

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Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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