Australia: Housing policy, RBA shift and IMF warning – Rabobank

💡 DMK Insight

Australia’s economic landscape is shifting, and here’s why that matters for traders: the RBA’s recent 25 bps rate hike signals a tightening stance amid stronger growth forecasts. This move could impact the Australian dollar, especially if traders perceive it as a precursor to more aggressive monetary policy. The IMF’s warning about the 5% deposit scheme potentially fueling housing inflation adds another layer of complexity, suggesting that the housing market could face upward pressure. If inflation expectations rise, we might see increased volatility in AUD pairs, particularly against the USD. Watch for key resistance levels around recent highs, as a failure to break through could trigger profit-taking. On the flip side, if the housing market cools due to these measures, it could lead to a more dovish RBA stance down the line. Keep an eye on the upcoming economic data releases and how they align with these policy shifts. Traders should monitor the AUD/USD closely, especially around the next RBA meeting for potential trading opportunities.