RBA maintains its hawkish position, potentially balancing the downside.
RBNZ’s dovish posture dragged down the Aussie as well as the Kiwi on Wednesday.
The AUD/USD pair experienced a decrease of 0.30% during Wednesday's session, settling near 0.6615, after the dovish Reserve Bank of New Zealand (RBNZ) decision. In addition, potential decline in demand for Australian exports due to the slowdown in the Chinese may negatively impact the AUD. However, the hawkish stance of the Reserve Bank of Australia (RBA), paired with mixed Australian economic data, can potentially temper the downside.
Despite the mixed Australian economic outlook and high inflation, the RBA's consistent hawkish position only strengthens predictions for 25 bps of easing for 2024.
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