AUDUSD Falls Below 0.65 Ending Three Day Rise

The AUD/USD currency pair declined under $0.65 on Monday, ending a three-day streak of gains. This drop happened because the US dollar strengthened, fueled by hopes that the US economy would improve. The US dollar also gained after President-elect Donald Trump warned BRICS countries with 100% tariffs if they support a new currency to replace the dollar.

In Australia, new data showed that retail sales in October were higher than expected. This news led investors to believe that interest rate cuts in Australia won’t happen soon. Last week, Michele Bullock, the Governor of the Reserve Bank of Australia, said that core inflation is still too high to lower interest rates.

She emphasized that strict policies will remain until there is more confidence that inflation is under control, noting that more work is needed to bring prices back to the target level set by the RBA.

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