The Australian dollar fell against the US dollar on Thursday. The current exchange rate for AUDUSD stands at 0.6604.
The market anticipates that April’s Australian Consumer Price Index data, which turned out higher than expected, will not trigger an interest rate hike by the Reserve Bank of Australia. However, persistent inflation in the country could lead the RBA to raise its forecasts for price pressures.
It is worth considering that amid high prices, there could be a moderate increase in business activity and a decrease in household spending, while the employment market could become more fragile than before. Earlier, RBA Chair Michele Bullock described the current monetary strategy as a balance of risks between timely bringing inflation back to target and minimising excessive business activity and employment market indicators. This is like negotiating within very narrow permissible limits.