Australian Dollar Wavers, Traders Beware!
The Australian Dollar (AUD) weakened against the US Dollar (USD) after opening higher on Monday. This weakening occurred as the US Dollar strengthened, driven by demand for safe-haven assets following recent comments by US President Donald Trump.
However, the AUD briefly strengthened again as the US Dollar was pressured by rumors of possible foreign exchange market intervention to support the Japanese Yen (JPY). The Federal Reserve Bank of New York was reported to have conducted interest rate checks with major banks, which was seen as a sign of preparation for intervention.
Domestically, strong Australian PMI data and employment conditions support the possibility of tighter monetary policy from the Reserve Bank of Australia (RBA). Although inflation slowed to 3.4% in November, this figure is still above the RBA's target of 2-3%, indicating persistent price pressures. (az)
Source: Newsmaker.id