The Australian dollar stabilized above $0.645 on Monday, buoyed by a hawkish stance on Reserve Bank of Australia (RBA) monetary policy.
Aussie dollar stabilizes on hawkish RBA view
Last week, RBA Governor Michele Bullock emphasized that interest rates are sufficiently restrictive and will remain at current levels until the central bank gains more confidence in the inflation outlook. Investors are now awaiting the release of the latest RBA meeting minutes this week for further insights into the central bank's policy direction.
Market focuses on PMIs
In addition, markets are focusing on upcoming reports on manufacturing and services activity for November to gauge the broader economic outlook. While the Aussie dollar has stabilized, it remains near its lowest levels in over three months, weighed down by the stronger US dollar, which has been bolstered by expectations of fewer Federal Reserve rate cuts and optimism surrounding US economic performance under a potential Trump presidency.
