The Aussie was up 0.3% at $0.69675, extending yesterday’s small gains, after Reserve Bank of Australia (RBA) Governor Philip Lowe signaled a much bigger policy tightening ahead. .
Mr Lowe said rates were still “very low” and it was important that higher inflation did not affect public expectations and wage demands.
Minutes of the RBA’s June meeting, in which the central bank raised rates by 50 basis points more than expected, highlighted the central bank’s concerns about inflation.
Still, the Australian dollar is coming under pressure from falling commodity prices, and CBA analysts said further declines in iron ore prices will weigh on the currency in the near term, while slowing global growth will be expected. a longer term brake.
“We expect AUD/USD to spend most of the next twelve months in a range of 0.60-0.70,” they said in a statement.
Elsewhere, the Japanese yen remained under pressure at 135.1 yen per dollar, not far from a 24-year low of 135.58 yen hit at the start of last week, after the Bank of Japan annihilated any slight on Friday. waiting for a change in policy and has renewed its commitment to ultra-flexible monetary parameters.
The euro was at $1.0519, a fraction higher, as remarks made by European Central Bank President Christine Lagarde on Monday on the need to nip in the bud the risk of financial fragmentation between the countries of the euro zone, have clipped the negative effect of the loss of the parliamentary majority of French President Emmanuel Macron.
A generally higher risk sentiment in the markets, with US stock futures up around 1%, also supported the Aussie and the euro.
The Dollar Index, which tracks the greenback against its six major counterparts, was slightly lower at 104.38. [MKTS/GLOB]
US markets were closed Monday for a holiday, but the big news for the dollar this week is Federal Reserve Chairman Jerome Powell’s two-day semi-annual report to Congress, which begins Wednesday.
The pound settled at $1.227, after hitting a two-year low of $1.1934 last week.
Bitcoin was at $20,500, failing to break above the psychologically significant $20,000 threshold in recent days.