Australian Dollar Strengthens On Improving Market Sentiment
The Australian dollar (AUD) continued its upward momentum against the US dollar (USD) for the third straight day on Monday (2/17), supported by US President Donald Trump's decision to delay the implementation of reciprocal tariffs.
The AUD/USD pair also strengthened as the US dollar (USD) weakened as disappointing US retail sales reports revived speculation that the Federal Reserve (Fed) will cut interest rates later this year, despite ongoing inflation concerns.
The AUD/USD pair's gains could be tempered amid growing speculation of a Reserve Bank of Australia (RBA) interest rate cut on Tuesday. The RBA is expected to cut the Official Cash Rate (OCR) by 25 basis points (bps) to 4.10%, the first rate cut in four years.
Source: FXStreet