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AUSTRALIAN DOLLAR RECOVERS AFTER LAST WEEK'S LOSSES

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  • AUD/USD started the week on the right foot on a quiet Monday.
  • Australia will release Q2 GDP data on Wednesday, which will be key.
  • RBA Governor Bullock is expected to reiterate hawkish guidance on Thursday despite market expectations of a rate cut in December.

The AUD/USD gained 0.30% in Monday's session, advancing to 0.6790. The pair is trading slightly higher on a quiet Monday as markets look ahead to key US labor market data this week, culminating in the Nonfarm Payrolls (NFP) report on Friday. On the domestic front, Gross Domestic Product (GDP) data and Reserve Bank of Australia (RBA) Governor Bullock's speech on Thursday are the key events to watch.

The Australian economic outlook remains uncertain, with both positive and negative indicators. The RBA has taken a hawkish stance due to elevated inflation, leading financial markets to anticipate only a modest 25 basis points of easing in interest rates by 2024.


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