AUD/USD resumes its decline following a consolidation period.
The Australian dollar, in tandem with the US dollar, is shedding value on Tuesday. The current exchange rate for AUD/USD is 0.6424.
In its recent meeting, the Reserve Bank of Australia decided to maintain the interest rate at 4.1% per annum, marking the third consecutive meeting without a rate adjustment. Markets are increasingly confident that there are no grounds for a rate hike.
From a fundamental perspective, the situation surrounding the Australian dollar is somewhat ambiguous.
Currently, the RBA's rate is lower than that of many other major central banks. This negative interest rate differential presents a significant hurdle for the AUD, impeding its ability to appreciate against major currencies. Recent positive news from China, suggesting potential interest rate cuts for mortgage loans, reduces the likelihood of a significant AUD drop.
However, substantial pressure continues to emanate from the USD.
Consequently, the Aussie is maintaining a modestly lower position, albeit with hopes for future stabilization.