The Australian dollar slipped below $0.647 as weaker-than-expected domestic data pressured the currency. Latest data showed that Australia’s monthly inflation gauge rose 4.9% year-on-year in July, slowing from a 5.4% gain in June and coming in below forecasts for a 5.2% rise. Total dwelling approvals in the country also recorded a sharp decline in July, while construction output missed forecasts in the second quarter. The Reserve Bank of Australia is widely expected to maintain its key interest rate at 4.1% during its upcoming meeting in September as the board buys time to weigh the impact of previous rate hikes on the economy. Meanwhile, the aussie remains up for the week as signs that the US economy may be cooling raised hopes the Federal Reserve would lighten its policy stance.
Historically, the Australian Dollar reached an all time high of 1.49 in December of 1973. Australian Dollar - data, forecasts, historical chart - was last updated on August of 2023.
The Australian Dollar is expected to trade at 0.63 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 0.59 in 12 months time.