The Australian dollar, in the pair with the US dollar, is accelerating its decline. The current AUDUSD exchange rate stands at 0.6564.
Currently, the AUD is hovering near the lows of 13 December 2023.
The Reserve Bank of Australia considers the current interest rate value of 4.35% per annum to be the peak. Earlier, there were expectations of an interest rate hike at the February meeting, but now these forecasts no longer hold weight.
Market sentiment is also changing. Investors anticipate the interest rate to remain unchanged until November, after which it could start decreasing. On average, the forecast suggests a reduction in borrowing costs by 125 basis points to 3.10% per annum by the end of 2025.
Inflation in Q4 is likely to demonstrate a decline. In such conditions, the RBA will lack grounds for a rate hike, which exerts additional pressure on AUD positions.