Weekly Roundup: Australian dollar fluctuates higher amid shifting market mood 

A tepid market mood and uneventful meeting minutes from the Reserve Bank of Australia (RBA) saw the risk-sensitive Australian dollar move in a narrow range at the start of last week’s session. 

In the middle of the week, AUD experienced volatility. An improving mood initially saw the ‘Aussie’ strengthen before shedding its gains as sentiment soured in the wake of the Fed’s policy decision. 

The Australian dollar was then able to rally through the latter part of the week, thanks to a return of risk appetite and an upbeat services PMI, with the currency finishing the week up against its weaker peers. 

This week, RBA bets could drive most movement. The bank is holding its annual conference on inflation, with August’s CPI due to be published the following day. 

If Australian inflation ticks higher, as economists expect, then fresh bets on another RBA rate hike could boost the ‘Aussie’.