AUD Retreats Ahead of RBA Speech and Fed Decision
The Australian Dollar retreated from its intraday gains on Monday ahead of key economic releases in Australia and the United States. The AUD/USD pair traded near 0.6990, still up from Friday's close but failing to hold above 0.7000.
Investors are awaiting the Reserve Bank of Australia Governor Michele Bullock's speech on Tuesday, followed by Australia's June inflation report on Wednesday. The Federal Reserve is also expected to keep interest rates at 3.50%-3.75% on Wednesday, with Chair Kevin Warsh's remarks potentially influencing the US Dollar's next move.
The decline in Oil prices has limited the AUD/USD pair's losses, falling over 7% and easing concerns about elevated energy costs contributing to inflationary pressure. However, the sharp pullback in Oil may not entirely alleviate expectations of a Fed rate increase, offering some support to risk-sensitive currencies like the Australian Dollar.