AUDUSD Analysis: December 20, 2023

AUDUSD analysis
AUDUSD – 4H Chart

AUDUSD analysis – The Australian dollar is currently stable at around $0.675, marking its strongest position in almost five months. This strength comes from the less aggressive monetary policies of the US Federal Reserve and the Bank of Japan, which has weakened the US dollar and the Japanese yen, benefiting other key currencies. The Australian dollar is also getting a boost from higher commodity prices, which are rising due to supply issues caused by attacks in the Red Sea and the possibility of lower interest rates increasing demand.

In Australia, the Reserve Bank’s recent meeting notes revealed that they thought about raising rates again in December. However, they opted to wait for more data, as there were some positive signs regarding inflation. The Reserve Bank also noted a faster-than-expected slowdown in overall demand and a quicker rate of disinflation in other countries.

AUDUSD analysis

AUDUSD Analysis – 4H