AUD/USD climbs 0.20% after RBA meeting minutes signal potential rate increases, with July inflation figures due later this week.
The Australian Dollar strengthened against the USD, trading at 0.7163 after recovering from a daily low of 0.7137. The move followed the Reserve Bank of Australia’s latest meeting minutes, which indicated the board considered raising interest rates, lifting hike expectations.
Market focus now shifts to Australia’s July Consumer Price Index, forecast to ease to 3.2% year-over-year from 3.8%. The Trimmed Mean CPI will also be closely watched for underlying inflation trends. Meanwhile, US economic data showed mixed signals, with consumer confidence hitting a seven-month low.
Oil prices dropped over 5% on unconfirmed reports of a US-Iran ceasefire, though markets remain cautious amid geopolitical uncertainty. Boston Fed President Susan Collins reiterated concerns over persistent inflation, supporting a hawkish stance.