Australian Dollar saw red on Friday, fundamentals might limit the downside

• AUD/USD slightly retreats, settling near 0.6575 on Friday.
• RBA reiterates its hawkish stance, contributing to a buoyant AUD.
• Investors digest Chinese inflation reported during the European session.

The AUD/USD pair witnessed a minor setback at 0.6575 during Friday’s session, a modest descent of 0.30%. That being said, the Reserve Bank of Australia’s (RBA) unwavering hawkish discourse and stronger Chinese inflation figures might limit the downside for the Aussie.

Given the complex Australian economic prospect and the RBA’s hawkish inclination due to elevated inflation, markets persistently price just a 25 bps easing in 2024.