Anna 
The Australian Dollar (AUD) concluded its three-day winning streak on Monday, facing headwinds from a softer US Dollar (USD). The S&P/ASX 200 Index retreated from all-time highs, notably in the materials and healthcare sectors, contributing to the pause in the AUD’s upward momentum. The decline in Australian shares followed a similar trend in US technology stocks on Friday, tempering the strength of the AUD/USD pair.
Last week, the Australian Dollar saw a notable 1.60% gain against the US Dollar, driven by growing expectations of earlier interest rate cuts by the US Federal Reserve (Fed) compared to other major central banks. However, the Australian economy’s fourth-quarter expansion fell below expectations, and the Trade Balance surplus didn’t meet projections. These economic indicators provide a basis for discussions about potential rate cuts by the Reserve Bank of Australia (RBA) in the near future.
Amidst a cautious market sentiment, the US Dollar Index (DXY) maintains its position as traders await the US Consumer Price Index (CPI) data for February, scheduled for release on Tuesday. Investors will closely monitor a panel discussion at the AFR Business Summit in Sydney, where Sarah Hunter, Assistant Governor (Economics) at the Reserve Bank of Australia, may offer insights into domestic inflation trends. Additionally, attention will be on the release of the Australian Westpac Consumer Confidence for March.
