Aussie Falls Below $0.675 Amid US Dollar Surges

AUD/USD—The Australian dollar dropped below $0.675, moving further away from its six-month highs as the US dollar strengthened. This shift came after the failed assassination attempt over the weekend increased the chances of a second Trump presidency.

Aussie Falls Below $0.675 Amid US Dollar Surges

Investors also considered recent comments from Federal Reserve Chair Jerome Powell, who noted that current data increases confidence that inflation will return to the 2% target. Despite this, the Australian dollar stayed relatively strong compared to other currencies, as the Reserve Bank of Australia is expected to delay easing policies longer than other major central banks.

Additionally, there is a chance for another RBA rate hike this year due to ongoing domestic inflation. Investors are now waiting for Australian employment figures to assess the labor market’s condition later this week.