FX.co ★ Australian Dollar Edges Higher

On Monday, the Australian dollar rose to approximately $0.653, bolstered by the ongoing weakness of the US dollar amidst a dovish stance from the Federal Reserve and heightened fiscal concerns. Market participants are paying close attention to the forthcoming US employment data, as it may influence expectations for a potential interest rate reduction in July. Further adding pressure to the US dollar is the prevailing investor unease surrounding a significant tax and spending bill under Senate review, which may increase the national debt by $3.3 trillion. Domestically, the Melbourne Institute's Monthly Inflation Gauge indicated a slight rise in June, countering the previous month's dip and marking the fourth rise so far this year. However, the growth of private sector credit has decelerated, falling short of market predictions, primarily due to reduced business lending activity. Investors are now looking forward to Australia’s June manufacturing PMI to gain insights into the sector's vitality and the country's overall economic trajectory.