AUDUSD updated its 10-month highs after the RBA meeting.
The Australian Dollar improved pretty much against the USD. The current quote for the instrument is 0.7629.
The Reserve Bank of Australia had another meeting in the morning and left the benchmark interest rate intact at 0.10%, just as expected. This time, the regulator’s comments were more “hawkish” than after the previous session – it said that it was no longer calling its stance on inflation patient. Market players took this news as an intermediate step toward a possible monetary policy tightening in the nearest future.
According to the RBA, the Australian economy remains stable. The consumption is slowly increasing after a recent Omikron outbreak.
Before raising the rates, the RBA wants to make sure that inflation is stable in the 2-3% range. At the moment, the CPI is rising and this trend is expected to continue. The regulator believes that the key sources of uncertainty are the changes in global energy markets, escalation of costs for the labour force, and supply issues.
Demand in the labour market remains pretty high and experts are expecting a boost in salaries growth.
This time, the RBA was quite clear and objective. In response to this, the AUD went up.
