AUD Slides as RBA's Higher Rate Fails to Boost Currency

The Australian Dollar (AUD) continues to slide against the US Dollar (USD), despite having a higher cash rate than the Federal Reserve (Fed). The Reserve Bank of Australia (RBA) has kept its interest rate at 4.35%, while the Fed has raised its rate range to 3.75-4.00% after a quarter-point hike on Wednesday.

The RBA's more aggressive rate-setting approach has not boosted the AUD, which has fallen four out of five sessions in a row from its September high near $0.7250. The currency is now trading just under $0.7100, below its 50-day average for the first time in six weeks.

RBA Governor Bullock will speak on Thursday at 23:30 GMT, which could provide some insight into the central bank's future rate decisions. However, the Fed's projections suggest one more hike this year to 4.1%, narrowing the gap between the two interest rates.