The post AUD/USD extends upside to near 0.6500 amid weaker US Dollar appeared on BitcoinEthereumNews.com.

AUD/USD gains ground to around 0.6500 in Monday’s early Asian session.  The ongoing “sell America” trend weighs on the US dollar broadly.  RBA dovish rate cuts might cap the upside for the pair.  The AUD/USD pair extends the rally to around 0.6500 during the early Asian session on Monday. The persistent trade war fears and the ongoing “sell America” trend drag the US dollar (USD) lower and provide some support to the pair. US markets are closed due to the Memorial Day holiday on Monday.  Fed officials have said in recent weeks that they will keep rates on hold due to lingering uncertainty over US President Donald Trump’s tariff policies. Chicago Federal Reserve (Fed) President Austan Goolsbee noted on Friday that Trump’s latest tariff threats have complicated policy and likely put off changes to interest rates. Meanwhile, Kansas City Fed President Jeffrey Schmid said that the officials will lean on hard data in making interest rate decisions and the Fed needs to be careful how much emphasis it puts on soft data.  According to the CME FedWatch tool, markets have priced in nearly a 71% chance that the Fed will keep its interest rates steady through its next two meetings. Analysts expect the US central bank to cut twice this year, with the next move not happening until September. The renewed trade tensions and growing concerns around the US fiscal outlook continue to undermine the Greenback against the Aussie. The USD struggled to gain ground since Moody’s downgraded the US credit rating from Aaa to Aa1. This move aligns with similar downgrades by Fitch Ratings in 2023 and Standard & Poor’s in 2011. On the other hand, the Reserve Bank of Australia’s (RBA) dovish rate cuts might cap the upside for the Australian Dollar (AUD). The RBA decided to lower its cash rate…

---

Filed under: News - @ May 26, 2025 12:18 am