"You say we need interest rates higher for longer, yet why is the aud being dumped??"
The RBA has a track record of keeping interest rates low. Now that it looks like there will be more raises and no pivot soon in the USA, AUD must fall because it is unlikely that the RBA will follow USA interest rates higher to the same extent, even if inflation is remaining high in Australia.
Borrowers in Australia are protected with low interest rates which are currently less than half the rate of inflation, while savers are slaughtered by high inflation. In Australia, money is cheap and Inflation is high. The huge contrast with the USA makes AUD weak vs USD.
(In my opinion, the RBA has been and continues to be seriously negligent. I can only speculate as to why. Is there any place where ppl can see how much borrowings each member of the RBA has?)
(20min delay)