Australian dollar on four-session decline

The Australian dollar depreciated past $0.658 on Monday, marking its fourth consecutive session of losses and holding near a two-week low, as the greenback continued to strengthen.

The US dollar was supported by a more hawkish tone from the Federal Reserve, despite last week’s widely anticipated quarter-point rate cut.

Investors are now closely watching a series of speeches from Fed officials scheduled throughout the week, including Chair Jerome Powell, with particular attention on their views regarding the economic outlook and the Fed's policy independence.

At home, attention is turning to today’s PMI data, followed by Wednesday’s release of the Monthly CPI Indicator.

The inflation report will be scrutinized to assess whether July’s sharp CPI increase was primarily driven by the expiry of electricity subsidies or indicative of broader inflationary pressures.

Should inflation remain elevated or accelerate further, expectations for RBA rate cuts could be delayed well into next year.