AUD Trades Steadily Despite Commodity Slump, Interest Rate Decision Looms

The Australian Dollar traded steadily just beneath $0.7000 on Monday, despite a sharp drop in Crude Oil prices and Iron Ore staying below $100 a tonne.

This move contradicts the usual commodity-driven dynamics of the currency, with its value instead being influenced by global risk appetite.

The Reserve Bank of Australia's upcoming interest rate decision on Wednesday will be crucial in determining the AUD's future trajectory, with swaps pricing in a further quarter-point increase within six months and most economists expecting at least one more hike this year.