The Australian dollar, paired with the US dollar, has reached a three-week high. The current AUDUSD exchange rate stands at 0.6422.
The Aussie managed to recover after the US Federal Reserve kept the interest rate unchanged at 5.50% per annum for the second consecutive time. The market's reasoning is as follows: US interest rates have likely reached their peak due to recession concerns. If this is the case, more market attention will be focused on risk assets.
At the same time, Australians are becoming more concerned about a possible increase in inflation pressure. In Q3, the Consumer Price Index (CPI) stood at 5.3%, which is lower than before but higher than expected.
Last week, Reserve Bank of Australia Governor Michele Bullock stated that the central bank would not hesitate to raise the interest rate if it sees inflation accelerating. The current RBA rate is 4.10% per annum.