Anna 
After witnessing declines in the previous two sessions, the Australian dollar made attempts to reclaim lost ground on Monday, benefitting from a weaker U.S. dollar amid subdued U.S. Treasury yields. The trading atmosphere on Monday remained relatively calm, marked by Martin Luther King Jr. Day in the United States.
Speculation surrounding a potential interest rate cut by the Federal Reserve in March has contributed to upward momentum for the Australian dollar. This speculation gained traction, especially after Barclays revised its forecast on Friday, anticipating the Federal Reserve’s first interest rate cut to occur in March instead of June. In their note, Barclays analysts projected a 25 basis points cut by the Federal Open Market Committee (FOMC) during its March meeting.
Positive signals were also noted in Australia’s employment advertisement data released by ANZ Banking Group (ANZ), indicating a 0.1% improvement in Australia’s employment situation for December, reversing the previous decline of 4.6%. Market attention will remain focused on the upcoming releases of Westpac consumer sentiment for January and TD Securities inflation for December, scheduled for Tuesday. Later in the week, Thursday will bring consumer inflation expectations and labor market data into focus.
