Ella 
The Australian dollar pared its recent losses on Monday, likely supported by positive purchasing managers’ index (PMI) data from China. Additionally, AUD/USD was supported by downward pressure on the U.S. dollar as U.S. Treasury yields fell. Trading activity is expected to be subdued as Easter Monday approaches.
The Australian dollar faces challenges on weaker consumer inflation expectations, which could signal an interest rate cut by the Reserve Bank of Australia in late 2024. Investors are likely to pay close attention to the minutes of the Reserve Bank of Australia meeting due to be released on Tuesday.
The U.S. dollar index (DXY) struggled following dovish comments from Federal Reserve (FED) Chairman Jerome Powell on Friday. Federal Reserve Chairman Jerome Powell said that recent U.S. inflation data were in line with the expected trajectory, confirming the Fed’s stance of cutting interest rates this year. The US PCE price index in February was in line with expectations.
