Aussie dollar falls below US70c

by | Feb 2, 2022 | Australia, Prices

The Australian dollar fell below US70c this week as markets digested news the US Federal Reserve is contemplating hiking interest rates to avoid inflation. The Aussie dollar dropped to US69.68c last week, the cheapest it’s been since July 2020, 2.7% in a week. According to analysts, the Australian dollar is generally driven by offshore influences, however, the Reserve Bank of Australia is meeting this week, expected to shut down its quantitative easing program, and upgrade its inflation forecasts. Economists expects the RBA to upgrade its inflation forecasts and quit bond purchases under quantitative easing and signal clearly that the Bank wants to see sustainability faster wages growth before it moves to hike rates.