Dollar weighed down
At 0700 AEDT on Monday, the local unit was trading at 77.77 US cents, down from 77.87 cents on Friday.
OM Financial, senior client adviser, Stuart Ive said the Australian dollar fell despite gains in commodity prices at the end of last week.
“The Aussie dollar is pretty much weighed down by monetary policy at the moment, expectations that we’re going to see more rate cuts,” he said. “The RBA stands willing to cut rates as the employment situation and the economy continue to stagger along.”
Ive said it would be a quite start to the week with no significant local data out on Monday, and US markets being closed for the Presidents’ Day public holiday.
After that, all eyes will be on Tuesday’s release of the minutes of the Reserve Bank’s board meeting of two weeks ago when the cash rate was cut to a new record low of 2.25 per cent.
Ive expects the Australian dollar to trade in a fairly tight range on Monday, between 77.50 and 78.15 US cents.