Observations from October
October was a rocky month for equity markets with various concerns hitting investor sentiment.
In Australia, the prospects for more interest rate hikes by the Reserve Bank of Australia (RBA) have been raised due to continued elevated inflation. Service sector inflation and fuel prices are recent signs of this stickiness.
The US Federal Open Market Committee (FOMC) maintained the federal funds rate at 5.25%-5.50%, with indications that peak rates may have been reached.
Key drivers influencing the AUD/USD rate at present include central bank settings and the outlook for markets and economies.
|