FX.co ★ Australian Dollar Kicks Off the Week Higher

On Monday, the Australian dollar appreciated to approximately $0.651 amidst a calm week concerning domestic economic data. Investors are now directing their focus towards the upcoming Westpac Consumer Confidence Index, consumer inflation expectations, preliminary PMIs, and speeches by officials from the Reserve Bank of Australia scheduled for this week. Regarding monetary policy, there is a growing anticipation among investors for further easing measures by the RBA before the year concludes. Although no immediate policy adjustments are expected, the market is currently factoring in an additional 50 basis points in rate cuts by November. In its meeting in August 2025, the central bank reduced the cash rate by 25 basis points to 3.60%, executing the third reduction this year and bringing borrowing costs to their lowest point since April 2023. Meanwhile, investors are also evaluating the implications of the evolving U.S. tariff policies, especially after the Trump administration's decision to extend its 50% tariffs on steel and aluminum to encompass several hundred additional products, effective today, August 18.