The Australian dollar, paired with the US dollar, rose on Wednesday. The current AUDUSD exchange rate stands at 0.6644.
The Aussie is appreciating due to the weakening US dollar and the market's anticipation of today's release of April's inflationary statistics. Investors believe that the Federal Reserve has a chance to lower interest rates this year.
Morning reports showed that Australia’s wage price index in Q1 2024 increased by 4.1% y/y, up from the previous 0.9% but falling short of the forecasted 4.2%. The indicator rose 0.8% quarter-on-quarter, compared to the forecasted 0.9% and the last value of 1.0%.
In the Australian annual budget draft, investors have observed the government’s intention to address overall inflation, including a reduction in income tax, to alleviate the financial burden on citizens' everyday lives.
According to Treasury spokesperson Jim Chalmers, inflation, currently at 3.6%, is expected to return to the RBA’s 2-3% target range by the end of the year.
