AUD/USD is currently positioned in negative territory, hovering around 0.7060 during Tuesday’s Asian session. The RBA increased its OCR by 25 basis points to 4.10% during the March meeting, aligning with expectations. The Federal Reserve is poised to maintain interest rates at their current levels during the upcoming March meeting on Wednesday.
The AUD/USD pair sees a wave of selling pressure approaching 0.7060 during the Asian trading session on Tuesday. The Australian Dollar experiences a slight decline against the US Dollar following the interest rate decision by the Reserve Bank of Australia. Market participants will monitor the RBA press conference scheduled for later on Tuesday at 4:30 for additional insights regarding the interest rate trajectory. As widely anticipated, the RBA raised the Official Cash Rate by 25 basis points to 4.10% from 3.85% following the conclusion of its March monetary policy meeting.
RBA Governor Michele Bullock is scheduled to hold a press conference later today to elucidate the monetary policy decision. Any hawkish remarks from policymakers may strengthen the Aussie relative to the Greenback in the short term. The upcoming decision regarding interest rates by the US Federal Reserve on Wednesday is set to capture significant attention. The Fed is anticipated to maintain its benchmark interest rate within the current range of 3.50% to 3.75% at the conclusion of its two-day meeting on Wednesday.
Increasing energy prices since the onset of the Iran war have caused analysts to revise their expectations regarding rate cuts. Goldman Sachs economists have revised their outlook, eliminating the expectation for a Fed rate cut in June due to “a higher inflation path.” They forecasted reductions in September and December, compared to June and September earlier.