Has weakened, hitting a three-year low against the US dollar.

Presents a bullish case based on monetary policy divergence. Australia's strong economy and rising inflation make the RBA unlikely to cut rates, which historically strengthens a currency against peers whose central banks are easing policy. The AUD is suggested to be undervalued.

The weakening labor market in Australia, with unemployment rising to its highest level since late 2021, is creating a bearish outlook for its currency.

The Reserve Bank of Australia's unexpected decision to hold interest rates steady is a short-term bullish signal for the currency.