The Australian dollar rose towards $0.655 on Monday, reaching its highest level in nearly two weeks, as the US dollar weakened following President-elect Donald Trump’s nomination of Scott Bessent as Treasury Secretary.
Australian dollar rises towards $0.655
Markets are betting that Bessent will focus on economic and market stability rather than making abrupt policy changes, causing traders to scale back on "Trump trades." Domestically, investors are closely watching upcoming Australian inflation data, which will offer crucial insights into the Reserve Bank of Australia's monetary policy outlook.
RBA may maintain its policy
In its latest meeting minutes, the RBA signaled it would maintain a restrictive policy stance until there is clear evidence that inflation is sustainably moving toward its target. However, the central bank also emphasized that future policy adjustments would depend on incoming economic data.
