Australian Dollar attempts to halt a three-day losing streak as the US Dollar weakens, but faces downward pressure from a dovish rate statement by the Reserve Bank of Australia. The bank adopts a data-dependent strategy in response to inflation and slowing economy challenges, raising the Official Cash Rate to a 12-year high at 4.35% following a notable increase in the Monthly Consumer Price Index for September. China’s inflation data shows an annual decline, and investors adopt a cautious stance as Fed officials resist lowering interest rates. In technical analysis, the Australian Dollar hovers around the 0.6400 support level, with the immediate resistance at 0.6417. The RBA’s primary mandate is to maintain price stability and full employment, achieved through interest rate adjustments. Macroeconomic data, such as GDP and PMIs, can impact the AUD. Quantitative easing and tightening are tools used in extreme economic situations, affecting the strength of the AUD accordingly.
