AUDUSD Holds Above $0.66 Amid Economic Signals

The Australian dollar has stabilized above $0.663 (AUD/USD) as traders eagerly await upcoming domestic retail sales and inflation figures. These data points will guide the Reserve Bank of Australia’s (RBA) monetary policy outlook.

AUDUSD Holds Above $0.66 Amid Economic Signals

Bloomberg—Recent minutes from the RBA meeting revealed that the board considered raising rates in May. However, they ultimately decided to maintain the current policy. The board acknowledged the difficulty in predicting future changes to the cash rate, noting the increasing risk of inflation staying above target for an extended period.

Market Expectations

Market participants are betting that domestic rates will remain high for longer. There’s only a 35% chance of a rate cut by December. This cautious outlook underscores the market’s uncertainty about the future direction of Australian monetary policy.

US Data Impact

Adding to the complexity, robust US economic data and hawkish Federal Reserve minutes have dampened sentiment around potential US rate cuts. This external pressure continues to weigh on the Australian dollar, influencing its stability and future direction.

By staying informed on these developments, traders can make better decisions in the dynamic forex market.

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