The Australian dollar pares gains near 0.6990 ahead of key inflation data and the Federal Reserve’s rate announcement this week.
The Australian dollar retreated from an intraday peak of 0.7011 to trade at 0.6990 against the US dollar, though it remains above Friday’s close. The pullback comes as investors position for Wednesday’s Australian consumer price index report and the Federal Reserve’s interest-rate decision later in the week.
Markets expect Australia’s CPI to show inflation easing slightly from the previous quarter, while the Fed is widely anticipated to hold rates steady. The pair had climbed earlier in the Asian session on light volume before profit-taking set in.
No immediate market reaction was reported, with traders awaiting fresh catalysts from the upcoming data releases.