Today's 3.43 per cent (A$0.035) decline to A$0.98 may be an...

Today's 3.43 per cent (A$0.035) decline to A$0.98 may be an adverse market reaction to higher than expected inflation announced by the ABS.

Economists lack a perfect forecasting record but are ruling out reductions to the RBA's cash rate in 2024. One fellow suggested the next move could be up, so a rise in mortgage and other interest rates. This would be highly likely to decrease consumer demand for goods (including, surprisingly, fresh fruit and vegetables even though these can be excellent value compared with processed food from supermarkets) so LAU would be negatively affected.

The other aspect of higher interest rates is when companies renegotiate borrowings, they will typically be paying a higher interest rate.

Some say 'when the herd sells, buy' but most of us on 'HC' are not qualified to give advice, so DYOR.