AUD Sinks Against Majors as Rate Hike Expectations Soar

The Australian Dollar (AUD) has declined against its major currency peers, trading 0.45% lower at around 0.7135 against the US Dollar (USD) during the European trading session on Monday.

This move comes as market sentiment turns risk-averse due to further escalation in Federal Reserve interest rate hike expectations.

The FOMC is poised to deliver a 25bps hike to a target range of 3.75%-4.00% on Wednesday, according to strategists at Brown Brothers Harriman (BBH), marking its first hike since July 2023.