 Australian Dollar declines broadly today, as markets brace for the upcoming RBA rate decision. With the cash rate expected to hold steady at 4.35%, speculation is rife about RBA's future monetary policy direction. Although the central bank maintains an open stance on rate adjustments, indicating that hikes are still possible, market consensus suggests that further increases are unlikely due to the subdued consumption climate. That's the base case until second-quarter CPI data presents significant upside surprises, which would make the next meeting in August live. Meanwhile, predictions for a rate cut are being deferred. While some economists anticipate a possible rate cut as early as the fourth quarter, others foresee this moving into the early next year. In broader currency market movements, New Zealand Dollar also showed weakness, but this trend extended to Yen and Swiss Franc, suggesting that these shifts are not tied to changes in risk sentiment. On a more positive note, Euro is on a recovery path, while Dollar, Canadian Dollar, and British Pound are appearing slightly stronger... |
