No matter what the outcome of the RBA I see AUDUSD failing and going lower
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Australian inflation reached 7.8% in January, rising even more than earlier this month and in October (7.3%). Next week RBA decides on the interest and according to Patrick Reid, Aussie will decrease regardless of the Reserve Bank decision.
FXMAG.COM: Do you expect Reserve Bank of Australia to pause hiking after February decision?
The RBA has got a big problem as inflation screamed higher more than The US, Europe and The UK. This will add to the pressure to raise more at the same time putting the Governor Lowe under more criticism.
Lets remember Australia never really suffered during GFC and 2008 because of Iron Ore and China. They without perhaps noticing have never had it so good.
Next week I see The RBA to talk tough but markets are now fully in the cutting narrative. The FED failed to keep USD supported and so did The ECB with the EUR. So in that sense no matter what the outcome of the RBA I see AUDUSD failing and going lower.
