Australian Dollar Strengthens, Is There a 'Big Deal' with the US?
The Australian dollar strengthened to $0.650 on Monday, extending gains from the previous session. This strengthening was driven by hopes of a significant agreement at a meeting between Prime Minister Anthony Albanese and US President Donald Trump in Washington. Albanese is expected to offer Australia's vast reserves of critical minerals as a supply alternative to China's dominance in rare earth metals. The meeting will also discuss continuing strategic cooperation within the AUKUS pact, including US support for Australia's procurement of nuclear-powered submarines.
Meanwhile, domestically, market participants are awaiting monetary policy guidance from Reserve Bank of Australia (RBA) officials scheduled to speak later this week. The market's primary focus is on the potential for an interest rate cut, following recent data showing an unexpected rise in the unemployment rate. If signs of policy easing emerge, the Australian dollar's strength could be restrained, although current external sentiment remains supportive. (az)
Source: Newsmaker.id