Anna 
Sydney, November, The Reserve Bank of Australia (RBA) announced at its latest meeting that it would raise the cash rate by 25 basis points to 4.35%. Although the market had already expected this decision to raise interest rates, the RBA introduced some dovish adjustments in the last paragraph of its policy statement, which was surprising. The move could signal that the RBA has a high bar for future interest rate hikes, especially given the upward revision to its inflation forecast.
Analysts from economists at TD Securities believe that although the current forecast shows that there will be no further interest rate hikes in this interest rate hike cycle, the next interest rate hike may occur in February or May of 2024. This may be an opportunity for the Reserve Bank of Australia to review its interest rate policy.
In the short term, market observers expect the AUD/USD exchange rate to likely trade in a range of 0.63 to 0.65. However, the Australian dollar is likely to rise in the longer term. This view is based on the view that the dollar correction has begun and that China’s stimulus policies are gradually taking effect. These factors may support the Australian dollar’s performance going forward.
