AUD/USD: The prospect of a possible interest rate hike should support Aussie – Commerzbank

On Monday, AUD/USD finished the session over 0.66. Economists at Commerzbank analyze Aussie’s outlook.

Something could still come Down Under

A final, perhaps only small, rate step of 15 basis points is still possible. However, the RBA is unlikely to be in a hurry. I think it will stay on hold in December, take its leave for the summer break and then assess in February, on the basis of the inflation figures for the fourth quarter and other economic data, whether another move is necessary or not. 

In general, however, the prospect of a possible interest rate hike should support the AUD. Especially if the price data and economic data surprise to the upside in the coming weeks.