FX.co ★ Aussie Dollar Gains on Trade Talk Optimism

The Australian dollar climbed to approximately $0.651 on Monday, building on gains from the previous week due to renewed optimism regarding US-China trade discussions. US President Donald Trump announced plans for officials from the United States and China to meet in London later in the day, with Treasury Secretary Scott Bessent representing the US and Vice Premier He Lifeng leading the Chinese delegation. These talks are occurring at a crucial juncture, as China contends with deflationary pressures and ongoing trade uncertainty continues to suppress business and consumer confidence in the US. Meanwhile, in Australia, a prominent economist has urged the central bank to consider a significant 35 basis points interest rate cut at its upcoming July meeting, going beyond the standard 25 basis points reductions implemented in February and May. This suggestion comes amid weak economic growth and tepid consumer spending, both of which are hindering a more robust recovery in the private sector.