The Australian dollar weakened against the US dollar on Monday (November 24th), ahead of the release of important inflation data due this week. The market is focusing on Australia's first "full" monthly CPI release for October on Wednesday, which is expected to provide new clues about the direction of the RBA's interest rate policy. Despite the pressure on the AUD, the AUD/USD pair still found some support due to expectations that the RBA will adopt a more cautious stance. The minutes of the RBA's November meeting indicated the central bank is likely to keep interest rates high for longer. ASX 30-Day Interbank Cash Rate Futures data also predicted a very small chance of a December 2025 rate cut, at only around 6%.

Statements by RBA Assistant Governor Sarah Hunter also shaped market expectations. She emphasized that excessively strong economic growth could trigger inflationary pressures, while monthly inflation data can be volatile, requiring the RBA to take a cautious approach. Hunter added that the central bank is now focused on assessing labor market conditions and monitoring how the effectiveness of monetary policy may change over time. All of this has investors awaiting Wednesday's inflation data as a key indicator of the AUD's next direction. (az)

Source: Newsmaker.id