19.12.202503:32:21UTC+00Australian Dollar Set for Weekly Decline

The Australian dollar remained relatively stable around $0.661, marking its position near two-week lows as it approached its first weekly decline in a month. This stabilization comes as investors anticipate the release of the Reserve Bank's December meeting minutes, which are expected to clarify the future policy outlook. Scheduled for next week, these minutes are likely to shed light on the board's discussions concerning potential monetary tightening and inflation concerns. Economists express varied opinions: some predict a rate hike in February, while others believe rates will remain unchanged unless unexpected near-term inflation triggers earlier action. The November Consumer Price Index (CPI) report is set for release on January 7, with more detailed December and fourth-quarter data expected on January 28. A quarterly rise of 0.8% or more in the trimmed mean inflation could lead the Reserve Bank of Australia (RBA) to increase rates during its February meeting. Currently, market predictions indicate a 25% probability of a rate move in February, increasing to 40% in March and 70% in May. In the United States, weaker inflation data and a cooling labor market have fueled expectations of further rate cuts by the Federal Reserve.