It’s been an interesting start to what promises to be a interesting week in the forex market. The biggest story of Monday’s trade thus far has been the continued strength of the dollar despite disappointing data in the world’s largest economy.
It’s going to be such an eventful week for the Australian dollar that it may set the tone for weeks to come. The most important event for the Australian dollar however, will be Tuesday’s monetary policy meeting at the Reserve Bank of Australia (RBA).
Commodity currencies have made something of a comeback this month buoyed by a recovery in oil prices, but further strong gains versus the U.S dollar are likely to be limited with the US interest rate cycle close to turning upwards.