Ella 
AUD/USD extended a winning streak that began on April 22 on Monday, trading around a three-week high of 0.6560. Rising hawkish sentiment from the Reserve Bank of Australia (RBA) and last week’s CPI inflation data beating expectations helped boost the Aussie dollar’s momentum.
According to the Australian Financial Review, Judo Bank chief economic adviser Warren Hogan predicts that the Reserve Bank of Australia will raise the cash rate three times in 2024, eventually reaching 5.1%, with the first increase likely to occur in August. Investors may be awaiting March retail sales data due to be released on Tuesday, as the data could provide insight into Australia’s consumer spending habits, which are significant for inflation and gross domestic product (GDP) trends. Influence.
The U.S. Dollar Index (DXY), which measures the performance of the U.S. dollar (USD) against six major currencies, retraced recent gains, possibly reflecting a shift in market risk appetite. However, market analysts expect the U.S. Federal Reserve (Fed) to keep the current interest rate range of 5.25%-5.5% unchanged at its upcoming interest rate decision on Wednesday, possibly due to concerns about rising inflation.
On Friday, U.S. core personal consumption expenditures (PCE) price index annual rate data showed an increase in March, increasing market speculation that the Federal Reserve may delay a potential interest rate cut until September. The likelihood that the Fed will keep rates on hold at its June meeting rose to 87.7% from 81.7% last week, according to the CME FedWatch tool.
