The Australian dollar is rapidly depreciating against the US dollar on Tuesday. The current AUDUSD exchange rate stands at 0.6324.
During today's meeting, the Reserve Bank of Australia left the interest rate unchanged at 4.1% per annum. In its comments, the RBA emphasised that there may be a need for future monetary policy tightening.
This marks the fourth consecutive time that the interest rate has remained unchanged, aligning with expectations. A sudden transformation in economic data would be necessary for the RBA to swiftly change its stance.
As noted by the RBA, monetary policy tightening may be needed to ensure that inflation returns to the target within a reasonable time. However, this will continue to depend on the forthcoming statistical data and evolving risk assessments.
According to current expectations, the likelihood of an interest rate hike at the November meeting is less than 30%.
The AUD exchange rate is declining due to pressure from the US dollar and the interest rate spread.