Breaking News
Investing Pro 0
Extended Sale! Save on premium data with Claim 60% OFF

Australian Dollar’s Decline Continues

By MarketPulse (Kenny Fisher)CurrenciesSep 27, 2023 06:45AM ET
Australian Dollar’s Decline Continues
By MarketPulse (Kenny Fisher)   |  Sep 27, 2023 06:45AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio

The Australian dollar has extended its losses on Wednesday and has dropped 1% on the week. In the European session, AUD/USD is trading at 0.6374, down 0.35%. The Australian dollar finds itself perilously close to 0.6357, an 11-month low.

Australian Inflation Rises Due to Higher Fuel Costs

Australia’s inflation rate rose 5.2% y/y in August, up from 4.9% y/y in July and matching the consensus estimate. This marked the first acceleration in inflation since April, due in large part to higher fuel prices, which also contributed to a high monthly reading of 0.8%, up from 0.3% in July. A key core inflation indicator eased to 5.5% y/y, down from 5.8% y/y in July.

The inflation data didn’t have much of an effect on the markets, which are widely expecting a fourth straight pause from the Reserve Bank of Australia in October. The markets are viewing the uptick in inflation as a temporary blip and expect the overall downward trend to continue, with expectations for a rate hike in May 2024.

The RBA meets next week, the first meeting since Michelle Bullock took over as the RBA Governor. Bullock has stressed that the door is open to further rate hikes and rate decisions will depend on the data. This stance is not surprising as the central bank does not want to state that rates have peaked while inflation remains well above the 2% inflation target. I expect the RBA to reiterate this view at the meeting.

A key question is whether Bullock will stick to hawkish rhetoric but continue to pause, or will deliver one final rate hike before the end of the year. That decision will largely be based on economic data, such as the third-quarter inflation report in the last week of October.

AUD/USD Daily Chart
AUD/USD Daily Chart

AUD/USD Technical

  • AUD/USD is testing support at 0.6380. The next support line is 0.6320
  • There is resistance at 0.6446 and 0.6506

Original Post

Australian Dollar’s Decline Continues

Related Articles

Scott Barkley
USD/JPY: Where Will 5th Wave End? By Scott Barkley - Dec 04, 2023

Bearish: USD/JPY is currently at 1.2664 in a trend in a 5th wave. We are looking for a continuation to the ATR target at 145.80 with the further target  the Day chart bottom at...

Kenny Fisher
AUD/USD Slips Ahead of RBA Decision By Kenny Fisher - Dec 04, 2023

AUD/USD lower on Monday RBA likely to maintain rates on Tuesday The Australian dollar has started the week in negative territory. In the European session, AUD/USD is trading at...

Australian Dollar’s Decline Continues

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your profile, will be public on and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
Sign up with Email