AUD/USD Remains Uncertain, Despite the RBA Raising Rates
Skerdian Meta • 2 min read
The Reserve Bank of Australia was among the late entries to enter the interest rate rise race that has been going on among central banks since late last year. They have already raised rates four times from 0.10% to 1.85% and were expected to do so again, raising them by 0.50% this time.
Bond markets have modestly pared back expectations on how high the RBA will increase the cash rate and the AUD has been knocked lower as Europe’s energy crisis is turning the risk sentiment off, encouraging investors to stick with safer currencies. Commonwealth Bank forecasts that the RBA will pause its tightening for “at least a few months” when the cash rate reaches 2.85%.