AUD Retreats from Gains Ahead of RBA CPI and Fed Decision
The Australian Dollar retreated from its intraday gains on Monday as investors await key data releases and the Federal Reserve's interest-rate decision. The AUD/USD pair traded near 0.6990 after failing to hold above 0.7000, despite declining Oil prices limiting losses.
A decline in Oil prices triggered a sharp drop in energy costs, easing concerns about inflationary pressure and reducing expectations of an immediate Fed rate increase. This offered some support to risk-sensitive currencies like the Australian Dollar.
Investors will closely watch Reserve Bank of Australia Governor Michele Bullock's speech on Tuesday for comments on inflation and interest rates. On Wednesday, they'll focus on the June Consumer Price Index release, which may influence expectations about future RBA policy.