The Australian dollar, paired with the US dollar, has seen an increase by Friday. The current AUDUSD exchange rate stands at 0.6618.
The Aussie had earlier faced pressure when the Reserve Bank of Australia held the interest rate steady at 4.35% per annum. During that time, the CB mentioned that keeping the parameter unchanged would give it time to assess the impact of interest rate hikes on demand, inflation, and the employment sector.
The RBA also highlighted uncertainty around household consumption prospects. However, it generally acknowledges that inflation is decreasing while conditions in the labour market are easing.
The Australian economy saw a 0.2% q/q increase in Q3, falling short of the 0.4% growth forecast and marking the slowest growth rate this year.
Overall, the prospects for AUD are positive, provided there will be no drastic changes in the RBA’s monetary policy.