0310 GMT - The Reserve Bank of Australia is likely to spend more time than usual discussing foreign exchange markets at its February policy meeting, as the recent decline in the AUD/USD suggests a potential inflation impulse, says Sean Callow, senior currency strategist at InTouch Capital Markets. However, this effect is unlikely to be dramatic, especially if retailers face difficulties passing on higher import prices, he adds. More importantly, the RBA may focus on what the sliding AUD/USD indicates about global investors' expectations for China's economic growth in 2025 and the global economy, he adds. The AUD/USD has dropped from around 0.6500 six weeks ago to 0.6160 currently. (james.glynn@wsj.com ; @JamesGlynnWSJ)
(END) Dow Jones Newswires
January 12, 2025 22:10 ET (03:10 GMT)
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