Anna 
The Australian dollar saw a lackluster performance following the recent RBA meeting, prompting economists at Bank of Tokyo-Mitsubishi UFJ (MUFG) to assess the currency’s outlook.
The Reserve Bank of Australia (RBA) is indicating a waning confidence in the necessity for additional interest rate hikes. Presently, the RBA is closely monitoring economic data, and it appears that substantial inflation surprises will be required to prompt further interest rate increases.
Although there is an expectation that forthcoming data releases may lead to additional rate hikes by the RBA, concerns regarding ongoing inflation risks may deter the central bank from reducing rates prematurely in the coming year. It is anticipated that the Australian interest rate market could further diminish its expectations for interest rate hikes, which may weigh on the Australian dollar’s performance in the future.
The global economic landscape remains sluggish and could potentially weaken in the upcoming year due to the tightening of monetary policies. These external factors continue to pose challenges for the Australian dollar.
In the short term, the AUD/USD pair is likely to encounter resistance in its attempt to surpass the 200-day moving average, situated above the 0.6600 level.
