Aussie enjoys success. Forecast as of 13.06.2023 The Australian dollar strengthens amid the RBA decisiveness and the increase in the global risk appetite. The US economic strength, strong corporate earnings, and artificial intelligence are driving the S&P 500 and AUDUSD up. Monthly Australian dollar fundamental analysis The Australian dollar has had all the reasons to surge. The Australian economy is strong, and the Reserve Bank of Australia acts decisively. Investors believe in the Chinese booming economic recovery, betting on the AUDUSD. The Aussie enjoys success in June amid a rise in the global risk appetite and two surprises from the RBA, which raised the cash rate contrary to market expectations. As strong data on the US economy comes in, the chances of a recession are falling. A stagflationary economy favorable to safe-haven assets is giving way to a Goldilocks economy, when inflation gradually slows down, and GDP expands steadily. Such an environment is ideal for US stocks, which are supported by the expansion of artificial intelligence technologies and strong corporate earnings. Furthermore, the Fed is to make a pause in its monetary tightening in June, which could also last in July if the incoming data satisfy the central bank. The higher the S&P 500 rises, the stronger is the risk appetite, which always supports the AUDUSD. The AUD bulls are also encouraged by the RBA. In early June, the regulator raised the interest rate to 4.1% and removed the phrase from the text of the accompanying statement that inflation expectations were securely anchored. Philip Lowe noted that the desire to maintain a strong labor market does not mean that the RBA will tolerate high inflation. Dynamics of inflation and inflation expectations in Australia Source: Bloomberg. As a result, the derivatives market expects the cash rate to rise to 4.5%, the yield curve in Australia has inverted, and large banks talk about the first recession in Australia over the last 30 years if we do n