Australian Dollar remains close to three-year top vs. USD
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The AUD/USD pair attracts some buyers in the vicinity of mid-0.7000s during the Asian session on Monday and, for now, seems to have stalled its corrective pullback from a three-year high, touched last week. Spot prices currently trade around the 0.7080 region, up 0.10% for the day, and seem poised to appreciate further amid a supportive fundamental backdrop. The US Dollar (USD) continues with its struggle to attract any meaningful buyers and extends its sideways consolidative price in a familiar range held over the past week or so amid dovish Federal Reserve (Fed) expectations. In fact, traders ramped up their bets that the US central bank will lower borrowing costs in June following the release of softer US consumer inflation figures on Friday. Moreover, the Fed is expected to deliver at least two 25 basis points (bps) rate cut in 2026. This marks a significant divergence in comparison to expectations that the Reserve Bank of Australia (RBA) will hike interest rates again in May, which continues to act as a tailwind for the Australian Dollar (AUD) and validates the constructive outlook for the AUD/USD pair amid a positive risk tone. Meanwhile, China’s inflation figures released last week fueled concerns that deflationary pressures continue to weigh on the world’s second-largest economy. The data raised hopes for more fiscal and monetary stimulus from China, which further benefits the China-proxy Aussie. The focus shifts to the release of the FOMC Minutes on Wednesday and Australian employment details on Friday. Australian Dollar FAQs One of the most significant factors for the Australian Dollar (AUD) is the level of interest rates set by the Reserve Bank of Australia (RBA). Because Australia is a resource-rich country another key driver is the price of its biggest export, Iron Ore. The health of the Chinese economy, its largest…
Filed under: News - @ February 16, 2026 2:27 am