The Australian dollar dropped against its major counterparts on Monday, as investors cautiously awaited central bank meetings and U.S. corporate earnings.
Fed Governor Lisa Cook said on Friday that U.S. inflation remains elevated and broad-based but the outlook for the next stage of monetary policy is less clear.
The Fed is expected to deliver a final 25-basis-point (bps) interest rate increase in May and then hold rates steady.
Traders keenly await U.S. Commerce Department's report on personal income and spending, which includes a reading on inflation said to be preferred by the Federal Reserve.
Oil prices fell as the prospect of higher interest rates in the U.S. dented the demand outlook.
The aussie dropped to 89.42 against the yen and 0.9039 against the loonie, off its early highs of 89.82 and 0.9066, respectively. The next possible support for the aussie is seen around 86.00 against the yen and 0.89 against the loonie.
The aussie was down against the kiwi, at a 4-day low of 1.0870. If the aussie drops further, it may find support around the 1.06 area.
The aussie depreciated to near a 2-week low of 0.6665 against the greenback and a 5-1/2-month low of 1.6467 against the euro, from its early highs of 0.6697 and 1.6399, respectively. The aussie is seen finding support around 0.64 against the greenback and 1.66 against the euro.
Looking ahead, Canada new housing price index for March will be featured in the New York session.
