Anna 
The Australian Dollar (AUD) extended its recent decline on Thursday, influenced by the Reserve Bank of Australia (RBA)’s cautious approach following last week’s higher-than-expected inflation figures. The RBA opted to maintain its interest rate at 4.35% during its recent meeting, acknowledging that progress in controlling inflation has halted but keeping its options open.
In March, Australian inflation rose unexpectedly, diverging from market forecasts of stability. RBA Governor Michele Bullock emphasized the need to remain vigilant against inflation risks, expressing confidence that current interest rates are suitably positioned to guide inflation back towards the 2-3% target range by the second half of 2025 and to the midpoint by 2026.
Meanwhile, the US Dollar Index (DXY), which measures the USD against major currencies, advanced due to sentiments surrounding the Federal Reserve’s commitment to maintaining higher interest rates for an extended period. This stance has driven up US Treasury yields, lending further support to the US Dollar (USD).
