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AUD to USD Forecast: Middle East Conflict Casts Shadow on Aussie Dollar
Last Thursday, employment figures from Australia dampened expectations of an RBA rate hike. However, inflation figures on Wednesday could corner the RBA into a move. Hotter-than-expected inflation numbers may lead to an RBA rate hike on November 7. Higher interest rates raise borrowing costs, impacting disposable income and consumer spending. A pullback in consumer spending eases demand-driven inflationary pressures. Beyond the inflation figures, the Middle East conflict will remain a focal point. Concerns about an escalation may continue to cap the upside for the AUD/USD. The RBA and other central banks will likely ... (full story)