The Australian dollar is rising against the US dollar on Monday. The current AUDUSD exchange rate stands at 0.6634.
The market eagerly anticipates this week’s release of retail sales and consumer price index statistics, which are necessary to accurately determine the outlook for the Reserve Bank of Australia’s monetary policy.
The RBA’s previous meeting minutes showed that the Board of Directors was considering the possibility of raising lending rates in May. However, it ultimately decided to keep monetary conditions neutral.
Monetary conditions may imply future interest rate changes. However, the RBA believes that the recent data flow has increased the likelihood of inflation remaining above the target for an extended period.
Markets presume that the likelihood of an interest rate cut in December is estimated at 35%, which is not enough to trust this scenario fully.