Economists at ING analyze Aussie’s outlook ahead of the Reserve Bank of Australia’s Interest Rate Decision.
A hike by the RBA
We expect a 25 bps increase to 4.35%. For now, our view is that this will be the last hike of the cycle.
Consensus is almost fully aligned with our view for a hike, but markets are pricing in a 50% implied probability. We therefore see upside risks for AUD.
The recent jump in AUD/USD (driven by the USD correction) could extend into the 0.6550/0.6570 area, barring a USD rebound in today’s session.
Source: https://www.fxstreet.com/news/aud-usd-the-recent-jump-could-extend-into-the-06550-06570-area-ing-202311061106