Rabobank's Jane Foley pointed out in the report that since the RBA's rate hike may be slower than market expectations, the Australian dollar may experience a temporary retracement in the next few months. The Reserve Bank of Australia on Thursday signalled a cautious approach to high inflation. Foley said policymakers are likely to be patient as they launch a cycle of policy austerity. Foley believes that as traders make profitable settlements on long positions betting on an increase in the Australian dollar, this may cause the Australian dollar to fall in the short term. Rabobank believes there is room for the Australian dollar to reach 0.66 within one to three months.

Rabobank's Jane Foley pointed out in the report that since the RBA's rate hike may be slower than market expectations, the Australian dollar may experience a temporary retracement in the next few months. The Reserve Bank of Australia on Thursday signalled a cautious approach to high inflation. Foley said policymakers are likely to be patient as they launch a cycle of policy austerity. Foley believes that as traders make profitable settlements on long positions betting on an increase in the Australian dollar, this may cause the Australian dollar to fall in the short term. Rabobank believes there is room for the Australian dollar to reach 0.66 within one to three months.