FX.co ★ Australian Dollar Rises Amid Softer Greenback

The Australian dollar appreciated to approximately $0.66 on Monday, building on gains observed the previous week, influenced by a weakening U.S. dollar in anticipation of this week’s pivotal Federal Open Market Committee (FOMC) policy decision. Current market forecasts indicate a 96% likelihood of a 25 basis point rate cut this Wednesday, with only a 4% chance of a more substantial 50 basis point reduction. Domestically, Australia's economic schedule is relatively sparse this week. However, investors are turning their attention to the forthcoming employment report and planned addresses from Reserve Bank of Australia (RBA) officials, which could provide additional clues regarding the central bank's future policy direction. Last week, RBA Governor Michele Bullock underscored promising indications of increased private sector growth, considering this a positive development for the overall economy. Her comments reinforced the RBA’s prudent approach and bolstered market predictions that the central bank will maintain its current interest rates at its end-of-month policy meeting.