AUD/USD is lower, and the RBA's firm stance clashes with unsettling inflation expectations

The Reserve Bank of Australia kept interest rates unchanged, which surprised the market. Facts have proven that inflation is stubborn, and the level of inflation is expected to remain high until 2025.

FX678 Finance05:57 ET

Rental costs are soaring! Major central banks face stubborn obstacles to curbing inflation

In the US, the UK, Canada, and Australia, rapidly rising housing costs — which weigh heavily in the consumer price index basket — are preventing inflation from falling back to the central bank's target level.

Zhitong Finance23:22 ET

Australian Dollar Loses Ground Due to the Absence of a Hawkish RBA

The Australian Dollar (AUD) has plunged following the Reserve Bank of Australia (RBA)'s decision to maintain its interest rate at 4.35% on Tuesday. Investors sentiment leaned toward a potentially more hawkish stance from the RBA, particularly after last week's inflation data surpassed expectations. However, the RBA acknowledged that recent advancements in curbing inflation have halted, maintaining its forward guidance of "not ruling anything in or out."

FXStreet22:42 ET

RBA Rate Cut by November Looking Harder to Achieve, BlackRock Says -- Market Talk

BlackRock is still betting that the Reserve Bank of Australia will cut interest rates by November but admits that confidence is falling around the forecasts.

WSJ21:58 ET

Canadian Dollar Skittish on Tuesday Despite Improving Ivey PMI

Canadian Dollar easing but sticking to midrange

FXStreetMay 7 11:48 ET

Australia's Central Bank Maintains A Cautious Stance Despite Upside Surprises in Inflation, Says SocGen

The Reserve Bank of Australia (RBA) overnight Monday decided to leave the cash rate unchanged at 4.35%, noted Societe Generale.

MT NewswiresMay 7 10:39 ET