The Australian Dollar held steady against the US Dollar at 0.6624 as traders awaited the Reserve Bank of Australia’s (RBA) upcoming decision. With quiet US data and a UK bank holiday, the AUD/USD price action remained subdued. Analysts from ANZ expect the RBA to maintain rates but possibly take a hawkish stance due to inflation trends.
Wall Street closed higher, driven by optimism surrounding potential Fed rate cuts. The RBA is set to announce its monetary policy decision, with expectations of keeping the cash rate at 4.35%. ANZ analysts predict a slightly hawkish shift from the central bank following higher-than-expected Q1 2024 inflation figures.
In the US, Federal Reserve officials shared their views on interest rates. Thomas Barkin of the Federal Reserve Bank of Richmond believes high rates will slow the economy and lower inflation to the 2% target. New York Fed President, John Williams, mentioned rate cuts are likely but will depend on a thorough data review.