The Australian dollar in the pair with the US dollar will not give in, trying to recover. The current quote is 0.6953.
Moods change too fast but there are chances for a bounce. The decision of the Reserve bank of Australia from 7 February to increase the interest rate was expected: the interest rate grew from 3.10% to 3.35% a year. Starting May 2022, the RBA has lifted the rate by 325 base points total.
According to the regulator, the priority of its monetary policy for the nearest future will be bringing the CPI back to the target level, which is the traditional 2% - most global CBs stick to this mark. Thus, the necessity of further increases in the interest rate looks well-based in desired goals.
The RBA might raise the rate two more times by 25 base points each, bringing it to 3.85% a year. After that, it will be ready for a pause.
Take a look at the publication of the RBA’s report on the credit and monetary policy due on Friday, 10 February. Important clues might be found there.