Ella 
The Australian dollar (AUD) recovered from the day’s losses and turned positive on Monday, likely influenced by gains in domestic equities. The ASX 200 opened the week higher, driven in particular by a surge in technology stocks. However, a stable U.S. dollar (USD) may try to limit the gains in the AUD/USD pair.
The Australian dollar (AUD) faced challenges last week after Australia reported unchanged final retail sales and less optimistic trade balance data. Notably, Australia reported its smallest trade surplus in five months in February, partly due to lower iron ore exports.
The U.S. released strong non-farm payrolls data on Friday, and the U.S. dollar index (DXY) rose on rising U.S. Treasury yields. Improvements in labor market performance have reduced the likelihood of a rate cut by the Federal Reserve in June. The probability of a rate cut has dropped to 46.1%, according to the CME FedWatch tool.
