Australian dollar strengthens ahead of RBA

The Australian dollar was among the few currencies trading positive on Monday, rising 0.4%.

Focus was largely on a Reserve Bank of Australia meeting on Tuesday, with markets split over whether the bank will keep hiking rates. While inflation eased in recent months, it still remained well above the RBA’s 2-3% annual target.

The Australian jobs market has also remained strong, which could keep inflation sticky in the coming months and attract more policy tightening.