Aussie Slides to Eight-Week Low Ahead of RBA Meeting

The Australian dollar has been hovering near an eight-week low of around $0.70 as investors remain cautious ahead of the Reserve Bank of Australia's monetary policy meeting.

The Aussie finished last week with a loss of 1.4%, marking its third consecutive weekly decline and largest drop in three months.

This downturn is largely attributed to a stronger US dollar and elevated US Treasury yields following the Federal Reserve's interest rate hike earlier this month, which signalled further potential increases.

Despite markets pricing in a 25-basis-point rate hike to 4.60%, persistent inflation pressures have strengthened the case for tighter policy, with Governor Michele Bullock indicating upside inflation risks may materialize due to high energy prices and domestic excess demand.