AUD/USD flat amid US Dollar strength, RBA minutes eyed
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The Australian Dollar (AUD) trades little changed against the US Dollar (USD) on Monday, as a firmer Greenback keeps the Aussie on the defensive. At the time of writing, AUD/USD hovers around 0.7072, easing from three-year highs near 0.7147 touched late last week. Trading conditions also remain thin at the start of the week, further dampening volatility. With US markets closed for Presidents’ Day and several Asian markets observing the Lunar New Year holiday. The Greenback is showing tentative signs of stabilisation after recent weakness, as investors reassess the timing of Federal Reserve interest-rate cuts following last week’s labour market and inflation data. Headline Consumer Price Index (CPI) rose 0.2% month-on-month in January, slowing from 0.3% in December. On an annual basis, inflation eased to 2.4% from 2.7%. At the same time Unemployment rate edged down to 4.3% from 4.4%. On the labour front, Nonfarm Payrolls increased by 130K in January, rebounding from December’s revised 48K gain and comfortably beating market expectations. At the same time, the Unemployment Rate edged lower to 4.3% from 4.4%. Taken together, firm labour market conditions have tempered expectations for near-term easing, while moderating inflation keeps the Fed on a gradual rate cut path as price pressure trends closer to the 2% target. Following the CPI release, traders modestly increased their bets on policy easing later this year, with interest-rate futures pricing in more than 50 basis points (bps) of cuts over the remainder of 2026. According to the CME FedWatch Tool, investors currently expect the first rate cut to come in June. Attention now shifts to a heavy slate of US economic data due later this week. On Wednesday, investors will scrutinise the Fed’s latest Meeting Minutes for fresh clues on the monetary policy outlook. On Friday, markets will assess the core Personal Consumption…
Filed under: News - @ February 16, 2026 6:27 pm