Australian Dollar slips as US Dollar advances despite Fed rate cut bets rise
The Australian Dollar (AUD) loses ground against the US Dollar (USD) on Monday after registering more than 1% gains in the previous session. The AUD/USD pair gained ground as the US Dollar depreciated amid the rising likelihood of a Federal Reserve (Fed) interest rate cut in September.
Fed Chair Jerome Powell said at the Jackson Hole symposium on Friday that risks to the job market were rising, but also noted inflation remained a threat and that a decision wasn't set in stone. Powell also stated that the Fed still believes it may not need to tighten policy solely based on uncertain estimates that employment may be beyond its maximum sustainable level.
Traders anticipate the Reserve Bank of Australia (RBA) to remain cautious after last week’s rate cut. However, investors anticipate that the central bank may resume easing with a larger 50 basis-point rate cut, likely in November.
Source: FXstreet
