Australian Dollar Gains Traction on Weak US Data and RBA Uncertainty
The Australian Dollar (AUD) strengthened against the US Dollar (USD) on Monday, currently trading in the 0.6620s.
US Data Weakens US Dollar: Weaker-than-expected US Nonfarm Payrolls data, lower wage growth, and a decline in the US Services PMI contributed to a depreciation of the USD.
- RBA Meeting in Focus: The Reserve Bank of Australia's (RBA) meeting on Tuesday is a key event for the AUD. Expectations are for the RBA to maintain interest rates, but a hawkish stance or even a surprise rate hike could further strengthen the AUD.
Technical Analysis:
- The AUD/USD pair is currently trending upwards.
- A break above the March high of 0.6686 could be possible if the RBA takes a hawkish stance.
Overall, the future direction of the AUD/USD hinges on the outcome of the RBA meeting and its impact on the perception of future interest rate changes in Australia.