AUD/USD, NZD/USD and USD/JPY Outlook: RBA Holds Rates Steady as Inflation Slows
Portfolio Pulse from
The Reserve Bank of Australia (RBA) held interest rates steady at 4.1%, noting a decline in core inflation to 2.4% in Q4 2024. The central bank's cautious stance suggests a potential rate cut in May, which could weaken the Australian Dollar. Meanwhile, Japan shows economic recovery with increased industrial production and potential BoJ rate hikes.
April 01, 2025 | 5:00 am
News sentiment analysis
Sort by:
Ascending
NEGATIVE IMPACT
The RBA's potential rate cut and slowing inflation could lead to decreased investor confidence in the Australian Dollar, potentially causing a decline in the currency's value.
RBA's dovish stance, potential rate cut, and cooling inflation suggest reduced attractiveness of the Australian Dollar in the short term.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 90
POSITIVE IMPACT
Japan's improving economic indicators, including 2.5% industrial production growth and rising inflation expectations, support potential BoJ rate hikes and strengthen the Japanese Yen.
Positive economic data and potential BoJ rate hikes suggest increased attractiveness of the Japanese Yen in the short term.
CONFIDENCE 70
IMPORTANCE 75
RELEVANCE 85