Anna 
The Reserve Bank of Australia (RBA) has opted to keep interest rates unchanged, prompting a modest upward movement in the Australian Dollar (AUD). Analysts at Commerzbank assess the outlook for the Aussie currency.
The RBA has retained the suggestion of a potential future rate hike in its statement, differing from other central banks that have signaled additional tightening in recent weeks. The RBA’s statement notes that it “cannot rule out a further increase in interest rates.”
For the RBA to consider a rate cut, it is likely to seek greater confidence that inflation will sustainably return to the target. However, this assurance will depend on upcoming data releases. Monthly indicators are not expected until the end of February, with quarterly figures due just ahead of the RBA’s May meeting.
The RBA is anticipated to gradually abandon its cautious stance only when the data reveals a further decline in inflation. Until then, the Australian Dollar may find support, contingent on developments on the US side for the time being. The AUD/USD pair’s trajectory will be influenced by these factors in the near term.
