No matter what the outcome of the RBA I see AUDUSD failing and going lower

The Aussie Pair Extends The Previous Day’s Pullback

Australian inflation reached 7.8% in January, rising even more than earlier this month and in October (7.3%). Next week RBA decides on the interest and according to Patrick Reid, Aussie will decrease regardless of the Reserve Bank decision.

FXMAG.COM: Do you expect Reserve Bank of Australia to pause hiking after February decision?

The RBA has got a big problem as inflation screamed higher more than The US, Europe and The UK. This will add to the pressure to raise more at the same time putting the Governor Lowe under more criticism. 

Lets remember Australia never really suffered during GFC and 2008 because of Iron Ore and China. They without perhaps noticing have never had it so good. 

Next week I see The RBA to talk tough but markets are now fully in the cutting narrative. The FED failed to keep USD supported and so did The ECB with the EUR. So in that sense no matter what the outcome of the RBA I see AUDUSD failing and going lower.

Read next: Eurozone inflation: We believe the issue's roots were building up before the war, and some are saying it was groundwork set by the ECB| FXMAG.COM

The Aussie Pair Extends The Previous Day’s Pullback

Patrick Reid

Patrick Reid – Financial Expert

Patrick Reid is a currency expert with over 15 years experience in trading FX and propriety desks. He has accepted a role as Visiting Lecturer at The University of Cambridge and is Co-Founder of The Adamis Principle which mentors traders at all levels.

During his career he has mentored clients from Goldman Sachs, JP Morgan and Credit Suisse. His passion is nurturing and finding talent within young people has led him to partner with The Youth Group and Jack Parsons, The UK’s chief youth officer. Jack recently interviewed Rishi Sunak, The UK’s Chancellor of The Exchequer. Adamis Principle’s outreach to less fortunate young people is a top priority for him.

Patrick has regular meetings with FX traders at The Bank of England for research and academic discussions only.

Recent news

  • Patrick moderated the biggest buyside FX event last September with Trade Tech FX 27th September 2022
  • This event included the likes of Blackrock. UBS, Credit Suisse, BNY Mellon, Goldman Sachs and Natixis
  • Patrick has joined The London Speakers Bureaux alongside celebrity and financial titans such as Phillip Hammond, Nigel Farage, Bob Geldolf, Jeremy Clarkson and Priyanka Chopra.

Patrick can comment on:

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Patrick regularly appears on BBC1, BBC News, BBC Arabic, Talk Radio, BBC London Radio, ITV News, Channel 4 and Thomson Reuters

He has also appeared in a variety of newspapers from tabloids to broadsheets including The Mirror, Express, Metro and The Daily Telegraph

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