The Australian dollar is stable against the US dollar on Wednesday. The current AUDUSD exchange rate stands at 0.6412.
Nevertheless, the Aussie hovers around its five-month low as market attention is still focused on the situation surrounding the US Federal Reserve's interest rates. Fed Chair Jerome Powell stated yesterday that the regulator needed to observe more progress in reducing inflation before considering easing monetary policy.
This commentary followed a series of robust US macroeconomic reports, reinforcing the market's belief that the Fed will postpone the phase of interest rate cuts.
The Reserve Bank of Australia is expected to lower borrowing costs later in the year. However, a strong job market and elevated consumer inflation could disrupt these plans. Australia's unemployment rate dropped to 3.7% in February from 4.1% in January. The Consumer Price Index for the same month remained at 3.4% for the third consecutive month.