Australian Dollar Dips as Mixed Chinese PMI and RBA Rate Hike Expectations Weigh

The Australian Dollar traded lower against the US Dollar on Monday, amid mixed Chinese PMI data and growing expectations of an interest rate hike by the Reserve Bank of Australia (RBA). According to FX Street, the AUD/USD pair hovered around 0.7160, down 0.08% for the day.

Market watchers from OCBC noted that stronger Australian CPI figures and resilient household spending have fueled speculation of another RBA rate increase, pushing the AUD/USD to retest resistance levels near 0.7180–0.7200. United Overseas Bank (UOB) reported that the pair briefly surged above 0.7200 to a high of 0.7208 before reversing to a low of 0.7158. UOB expects an intraday pullback toward 0.7145, with resistance seen at 0.7170 and 0.7185.

For Japanese investors, the AUD/USD movement remains relevant as Australia’s economic outlook and central bank policies could influence broader Asia-Pacific currency trends and cross-border investment flows.