The Australian Dollar appreciates as the tight labor market raises concerns about a potential rate hike from the RBA. The PBoC has cut one- and five-year loan prime rates by 10 basis points to 3.35% and 3.85%, respectively. US President Joe Biden announced that he will not seek re-election against former President Donald Trump. The Australian Dollar halts its five-day losing streak on Monday.
Westpac's summary of a note on inflation in Australia and the RBA indicates that Australia is expected to follow the same broad disinflation trend as other countries, given that they face largely similar economic shocks. Fed Chair Powell stated last week that the three US inflation readings from this year add somewhat to confidence that inflation is on track to meet the Fed’s target sustainably, suggesting that a shift to interest rate cuts may be imminent.