Aussie dollar steady amid commodities boost and China outlook

The Australian dollar stayed above $0.62 on Friday, supported by more potent oil and gold prices, reflecting Australia's position as a key commodities exporter.

Aussie dollar steady amid commodities boost and China outlook

The currency also gained from a more positive economic outlook in China, Australia's largest trading partner, after Beijing committed to "more proactive" policies and lower interest rates this year. However, the Aussie remains near two-year lows, weighed down by the continued strength of the US dollar, which is bolstered by expectations of US economic outperformance and fewer rate cuts from the Federal Reserve in 2025.

RBA adopts dovish stance, markets anticipate rate cut in 2025

Domestically, the Reserve Bank of Australia has taken a more dovish tone, citing mounting economic concerns. Markets are now anticipating a potential quarter-point rate cut in April, with some even speculating it could happen as soon as February.