AUD/USD is in freefall due to prevailing global risk-off sentiment.
The Australian dollar, when paired with the US dollar, has plummeted even further. The current AUD/USD exchange rate is languishing at 0.6383.
These levels for the Aussie mark the lowest point since November 2022. Remarkably, the Australian dollar is weakening despite the release of relatively robust Q2 GDP data for Australia.
The AUD is experiencing a downturn as it loses the earlier support it enjoyed from the Reserve Bank of Australia. This week, the RBA maintained the interest rate at a steady 4.1% per annum for the third consecutive time. The regulator mentioned that inflation likely reached its peak, although it remains high. Simultaneously, according to the RBA's assessm ents, the economy is growing at a slower pace than anticipated, with the looming possibility of rising unemployment.
For the April to June period this year, Australia's GDP expanded by 0.4% quarter-on-quarter (2.1% year-on-year), slightly below the forecast of 0.4% quarter-on-quarter (2.4% year-on-year). This economic growth was primarily propelled by robust exports and active government investments.