Australian Dollar Rises Amid Softer Greenback
The Australian dollar rose to around $0.66 on Monday, extending gains from the previous week amid a softer greenback ahead of the highly anticipated FOMC policy decision later this week. Markets are currently pricing in a 96% probability of a 25 bps rate cut on Wednesday, with only a slim 4% chance of a larger 50 bps move.
On the domestic front, Australia’s economic calendar remains relatively light this week. However, investor focus is shifting toward the upcoming employment report and scheduled speeches from RBA officials, which could offer further insight into the central bank’s policy trajectory.
Last week, RBA Governor Michele Bullock highlighted encouraging signs of “a little bit more growth” in the private sector, characterizing this as a positive signal for the broader economy. Her remarks reinforced the RBA’s cautious stance and supported market expectations that the central bank will keep rates on hold at its upcoming policy meeting at the end of the month.
Source: Trading Economics
