AUSTRALIAN DOLLAR FORECAST: BEARISH
- The Australian Dollar has been augmented by a weaker US Dollar
- RBA rate hike pressure is eased somewhat by CPI missing estimates
- Fed action and US GDP play out but risks from China slowdown remain
The Australian Dollar has finished another tumultuous week higher than where it started.
Domestic inflation figures followed by the Federal Reserve rate hike and US GDP provided plenty of ammunition for volatility. The RBA will be making a decision on rates this Tuesday.
Australian CPI came in not as hot as anticipated and hosed down the prospect of a jumbo hike from the RBA this week.
This saw AUD/USD move lower into the Federal Reserve meeting and the 75- bp move from them hit market forecasts. It was the language from Fed Chair Jerome Powell in the aftermath that saw an adjustment lower of future hikes for the Fed.
This sent the US Dollar lower and the Aussie higher into US GDP figures that surprised to…