With the release, Australian Dollar (AUD) has slid to 1% that shows the inflation has slowed down and chances of a very high probability of 3rd rate cut this year by Reserve Bank of Australia (RBA)
Table 1.1: AUD/USD (After the Meeting)
The underlying reason for this downfall is core inflation which is far below the expectations that has dropped the Aussies to a level change of -0.72% while the inflation have severely moved to:
Bringing a change of 0.2% showing the CPI has affected in the several manner. Highlighted below are few numbers of the past :
With the surprising data, we predict that there will be rate cuts anytime soon. The major reasons for this downfall of commodity currency are given below:
From the above table, we predict that the Australian Dollar will be slightly bearish for the final quarter of the year, while the US dollar index will increase during the year due to positive numbers by the US government. While the currencies have strengthened against EURO and CNY But has decreased against other currencies. The commodity currency has been mostly used for the risk aversion purpose.