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AUD: Interest rate hike boosts outlook – Commerzbank

The Australian Dollar is benefiting from a recent interest rate hike by the Reserve Bank of Australia, which raised rates to 3.85%. The RBA's more hawkish projections for inflation and interest rates have also supported the AUD. However, structural problems may limit long-term gains, notes Volkmar Baur from Commerzbank.

Interest rate dynamics and AUD outlook

"This morning, the Aussie is benefiting not only from the Reserve Bank of Australia's interest rate hike, but also from the central bank's slightly more hawkish than expected tone."

"However, the projections are not entirely positive for the Aussie. Higher inflation and a more hawkish central bank should support the Aussie in the short term."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)

WTI falls to near $61.50 on possible US-Iran de-escalation

West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $61.60 during the early European trading hours on Tuesday. The WTI price tumbles after reports that the United States (US) and Iran would begin talks on Friday. 
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USD/CAD Price Forecast: Hovers around nine-day EMA above 1.3650

USD/CAD depreciates after two days of gains, trading around 1.3660 during the early European hours on Tuesday. The technical analysis of the daily chart shows the pair remains close to the upper boundary of the descending channel, suggesting a potential for bullish reversal.
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