The AUD/USD pair strengthens its position while the US dollar remains neutral.
The Australian dollar, in comparison to the US dollar, has reached a three-week high. The current AUD/USD exchange rate is at 0.6422.
The Aussie has made a recovery after the US Federal Reserve decided to keep its interest rate steady at 5.50% per annum for the second time. Market sentiment interprets this as a signal that US interest rates might have peaked due to concerns about a potential economic downturn. Consequently, more market attention is turning towards higher-risk assets.
Last week, Michele Bullock, the manager of the Reserve Bank of Australia, indicated that the central bank would not hesitate to raise interest rates if they observed an acceleration in inflation. The current RBA interest rate is at 4.10%.