FX.co ★ Aussie Dollar Extends Fall, Still on Track for Weekly Gain

The Australian dollar decreased to approximately $0.658 on Friday, continuing its decline from the previous day as investors exercised caution ahead of crucial inflation data expected next week. Both monthly and quarterly inflation reports are anticipated, potentially influencing the Reserve Bank of Australia's monetary policy direction. RBA Governor Michele Bullock has recently highlighted the bank's hesitancy to reduce interest rates without substantial evidence that inflation is consistently aligning with the 2.5% target, underscoring the RBA’s measured approach. Concurrently, market participants are monitoring the progression of U.S.–Australia trade relations. Recently, Australia agreed to relax restrictions on U.S. beef imports, a decision succeeding previous trade tensions. Despite the currency experiencing losses over two sessions, it remains poised for notable gains.