The start of Asian session trading saw Aussie dollar trading gain support to rise as investors awaited the Australian Central Bank (RBA) policy meeting at 11.30am (Malaysian time).
As the writing of the Aussie dollar traded steady at around 0.7050, it bounced back from the 1.5% loss it suffered last week.
The increase was driven by investor expectations that expect little action from RBA policymakers in response to the Federal Reserve (Fed) and the current economy.
However, with the emergence of a new variant of Omicron, it is likely to break the RBA’s intention to make a hawkish statement on its monetary policy.
Examining the movement of the currency king, the dollar index remained stable around 96.30 against its main competitor.
Investors are now awaiting inflation data from the United States and China this week, which is believed to further strengthen the US central bank’s hawkish signal for a faster stimulus easing.
Meanwhile, the pound continued to hover around an 11 -month low even though in yesterday’s European session, it was seen slightly rising.
The Deputy Governor of the Bank of England (BOE), Ben Broadbent warned that labor market instability would increase pressure on inflation, thus restoring hopes of raising interest rates.
