The US Dollar (USD) maintained its bullish trend, extending Friday’s post-Payrolls advance and keeping the risk complex under pressure at the beginning of the week.
AUD/USD navigated an inconclusive range around 0.6650 on Monday. The Dollar extended Friday’s post-NFP strong recovery amidst lower yields. Next on tap Down Under is the Westpac Consumer Confidence gauge. The US Dollar maintained its bullish trend, extending Friday’s post-Payrolls advance and keeping the risk complex under pressure at the beginning of the week. Against that, AUD/USD flirted with the 100-day SMA near 0.6650, where some initial support appears to have resurfaced.
She noted that if the economy progresses as expected, the Board does not anticipate being in a position to cut rates in the near future. Despite this, RBA cash rate futures still suggest a high probability, around 85%, of a 25 bps cut by year-end. Overall, the RBA is expected to be the last among the G10 central banks to start cutting rates.