7 April | Other

Australian dollar slid to five-year low amid expectations of RBA monetary easing

Australian dollar slid to five-year low amid expectations of RBA monetary easing

The Australian dollar slumped to five-year lows on Monday. Growing fears that escalating global trade tensions could trigger a worldwide recession spurred traders to price in significant monetary easing by the Reserve Bank of Australia (RBA), according to Reuters.

The agency noted a 20% probability that the central bank would implement a 50-basis-point rate cut at its May meeting.

According to IG analyst Tony Sycamore, the Australian dollar may decline as China-US tensions escalate. Given China's status as Australia's largest trading partner, retaliatory measures from Beijing may weaken the national currency.

Meanwhile, on Monday, Australia's three-year government bond yield dropped 11 basis points to 3.311%, its lowest level since May 2023. Reuters noted this marks the steepest three-day decline since 2011.

Anton Volkov MarketCheese
Period: 19.09.2025 Expectation: 950 pips
GBPUSD is correcting after testing resistance
12 September 2025 321
Gold buy
Period: 31.12.2025 Expectation: 2400 pips
Buying gold from $3,450 support
12 September 2025 95
Period: 19.09.2025 Expectation: 1000 pips
AUDCAD poised for further gains after brief consolidation
12 September 2025 310
Period: 31.10.2025 Expectation: 6000 pips
Selling SPX prior to seasonal correction
12 September 2025 294
Brent sell
Period: 19.09.2025 Expectation: 188 pips
Supply glut puts pressure on Brent prices
12 September 2025 321
Period: 18.09.2025 Expectation: 160 pips
Buying gas with $3.150 target amid completing correction
11 September 2025 423
Go to forecasts