AUD/USD is once again on a decline as investors steer clear of high-risk assets.
The Australian dollar, in tandem with the US dollar, is experiencing a weakening trend. The present exchange rate for AUD/USD is recorded at 0.6379.
The primary influencing factor on the Australian exchange rate is the behavior of the US Dollar.
Interestingly, there is a potential stabilizing factor for the AUD: inflation data. The consumer price index in Australia is on the rise, hinting at possible future interest rate hikes.
As of the end of August, the country's inflation surged by 5.2% year on year, completely countering the gradual decline in price pressures noted over the past three months.
With inflation resurging, the Reserve Bank of Australia (RBA) has a strong rationale to contemplate another rate hike before the year's end. The current rate stands at 4.1% per annum, unchanged during the past three meetings.
The Reserve Bank of Australia is scheduled to convene next week, marking the first meeting under the leadership of the new RBA head, Michele Bullock.
