The Australian dollar firmed early last week after the Reserve Bank of Australia’s (RBA) latest meeting minutes revealed that the bank may still raise interest rates, following its recent policy pause.
A shifting market mood then saw the risk-sensitive ‘Aussie’ waver through much of the week.
After an initial uptick on Thursday, a souring market mood on Friday saw AUD slide. Better-than-expected PMI data failed to help the ‘Aussie’.
So far this week, risk aversion is weighing on the Australian dollar.
Looking ahead, Australia’s latest inflation data is in the spotlight. If inflation eases, as forecast, a pullback in RBA rate hike bets could dent AUD exchange rates.
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