The Australian dollar remained below $0.637 on Monday, hovering near its lowest point in a year, weighed down by a stronger US dollar.
Australian dollar weakens as US dollar gains
The greenback strengthened as investors reduced expectations for Federal Reserve rate cuts in 2025, although a rate decrease this week is almost entirely priced in. Market participants also reacted to mixed economic data from China, where retail sales grew slower than expected in November, while industrial production exceeded forecasts. Domestically, traders awaited the Australian government’s budget outlook, which is expected to show more significant deficits, partly due to softer activity in China, Australia’s largest trading partner.
Australia appoints two new members to central bank board
On the monetary policy front, Treasurer Jim Chalmers appointed two new members to the central bank’s rate-setting board: banker Marnie Baker and economics professor Renee Fry-McKibbin.
