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by The Australian dollar has remained steady at around $0.665 (AUD/USD) as investors closely watch global monetary policy developments. Last week, the Aussie dollar gained strength against the US dollar due to weaker-than-expected US economic data. This data has sparked hope that the Federal Reserve might cut interest rates later this year.
AUDUSD Fundamental Analysis – 3-June-2024
Melbourne Inflation Surges for Third Month
Meanwhile, the Melbourne Institute’s Monthly Inflation Gauge in Australia rose by 0.3% in May. This marks the third consecutive month of rising inflation, reaching its highest since January. Despite this, the market believes there is almost no chance that the Reserve Bank of Australia (RBA) will ease its policy this year. Some investors are betting on another rate hike due to persistent inflation concerns.
Investors are eagerly awaiting the release of Australia’s first-quarter GDP numbers later this week. This data will be crucial in shaping the economic outlook and future monetary policy decisions.
Conclusion
In summary, while the Australian dollar remains stable, ongoing inflation and upcoming economic data will be key investor factors. Monitoring these developments can help make informed financial decisions in the current economic landscape.
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