Inflation Takes a Back Seat as Risks Accelerate

Australian Dollar Forecast: NeutralThe Australian Dollar is scoping new lows on a dovish RBAThe market is finally taking on board that the Fed is serious in the inflation fightTightening liquidity could have implications for risk assets like AUD/USD

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The Australian Dollar sailed south last week as the Reserve Bank of Australia (RBA) and Federal Reserve went their separate ways on monetary policy and high beta risk assets met headwinds going into the weekend.

The RBA raised rates by 25 basis points last Tuesday to 3.60% as widely anticipated but it was in the post-match presser when Governor Philip Lowe set the dove amongst the hawks.

The intonation from the February monetary policy statement led markets to believe that 25 bp could be expected at the March…

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