The Australian Dollar (AUD) inches higher against the US Dollar (USD) ahead of the Reserve Bank of Australia's (RBA) policy decision scheduled for Tuesday. The RBA is expected to maintain the Official Cash Rate (OCR) at 4.35%, citing strong labor market conditions and persistent inflationary pressures. Market projections suggest no rate cut before December, with some analysts predicting the first adjustment could occur as late as February or even in the second quarter of 2025.
The ANZ-Roy Morgan Australia Consumer Confidence Index rose by 0.8 points to 84.9 this week. Despite this increase, Consumer Confidence has now remained below the 85.0 mark for 86 consecutive weeks. On a year-over-year basis, the index is up by 8.5 points from 76.4.
The US Dollar (USD) could face challenges as Federal Reserve (Fed) officials forecast further rate cuts totaling 50 basis points (bps) in 2024, following an aggressive 50 bps cut last week. Supporting this outlook, Minneapolis Fed President Neel Kashkari stated on Monday that he expects and supports additional rate cuts in the coming year, per Reuters. (ayu)
Source : FXStreet
