AUD/USD registered sharp declines on Monday towards 0.6640.
During the Asian session, the PBOC loan prime rate was cut by 10 basis points.
Aussie’s stability is supported by the hawkish RBA stance, which remains reluctant to embrace cuts.
In Monday's session, the Australian Dollar (AUD) presented additional losses against the USD, with AUD/USD beginning the new week around 0.6640. This loss is largely attributed to falling Copper prices and the People Bank’s of China rate cut of 10 basis points. Revised Gross Domestic Product (GDP) Q2 figures and Personal Consumption Expenditures (PCE) from the US, along with Judo PMIs from Australia, are anticipated to shape the week's trading direction.
Despite some signs of weakness in the Australian economy, stubbornly high inflation continues to prompt the Reserve Bank of Australia (RBA) to delay rate cuts, potentially limiting any further decline in the AUD. The RBA maintains its stance amongst the last central banks within the G10 countries likely to begin rate cuts, a commitment that could extend the AUD's recent gains.
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