Australia’s currency rallied to its highest rate against the U.S. dollar on Monday. The AUD/USD currency pair began trading on Sunday evening at around 0.7704, however, by 3:15 a.m. EST on Monday, the pair was trading as high as 0.77479.
Monday’s rally also pushed the Australian dollar to a 4-month high, trading only 0.40% away from taking out the US election highs of 0.77782, printed on Nov. 8, 2016. The rally in the AUD/USD Forex pair was mainly driven by weakness in the U.S. Dollar Index, which fell to its lowest level in March - 100.02 - on Monday.
However, it remains to be seen if the Aussie dollar can hold onto today’s gains going into the Asian Forex session, when the Australian central bank releases its Minutes of the Monetary Policy Meeting of the Reserve Bank Board for the month of March, scheduled for 8:30 p.m. EST.
Tonight’s release will shed some light on RBA’s views on the global and domestic economic landscapes, as well as the the bank’s stance on monetary policy, which may have changed considerably after last week’s interest rate hike by the Federal Reserve in the United States.
AUD banknotes photo by Whit Andrews
