Aussie Dollar Falls Below $0.66 Amid US Growth

The Australian dollar fell below $0.660 on Monday, reaching its lowest point since mid-August. A stronger US dollar influenced this drop and rising Treasury yields, fueled by signs of a robust US economy and predictions of former President Donald Trump securing another term.

The below AUD/USD 4-hour price chart demonstrates the price, support, and resistance levels.

Australian Dollar Rises as Japan Faces Political Shift

At the same time, the Australian dollar gained value against the yen after Japan’s ruling party lost its majority in parliament, which could complicate the Bank of Japan’s plans for raising interest rates.

In Australia, investors are closely watching the upcoming inflation data as it might impact the Reserve Bank of Australia’s (RBA) decisions on monetary policy. The RBA stated that the current cash rate of 4.35% is tight enough to bring inflation down to their 2%-3% target while still supporting jobs.

• Next read: Kiwi Faces Pressure – Fed and RBNZ Rate Cuts Loom

The market believes the RBA will keep rates unchanged for the rest of the year, with the first potential rate cut expected around May next year.

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Ethan O. Miller

Ethan O. Miller is a seasoned Forex analyst. His insightful articles offer a unique perspective on currency trends, aiding both novice and experienced traders in navigating the Forex market.

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