Institutions are optimistic about the prospects of the Australian dollar, with carry trades showing strong appeal.

⑴ ING analyst Pesole stated in a report that although the Reserve Bank of Australia is unlikely to raise interest rates further, the outlook for the Australian dollar remains positive. ⑵ He noted that for carry trades borrowing in low-yield currencies to buy higher-yielding ones, the Australian dollar currently offers the best short-term returns among G10 currencies. ⑶ He said that despite some challenges in the environment due to concerns around artificial intelligence, the Australian dollar should rise to 0.710 US dollars by year-end. ⑷ The Reserve Bank of Australia raised rates by 25 basis points to 4.85%, but the decision was not unanimous, passing by a 6-to-3 vote. ⑸ The central bank also removed references to further policy tightening. ⑹ According to institutional data, the Australian dollar fell 0.4% to a two-week low of 0.6960 US dollars.