The Australian dollar fell in European trade on Tuesday against a basket of major rivals, extending losses for the second straight day against the dollar and moving away from a four-month peak on profit-taking.

The decline came despite the rather aggressive meeting minutes released by the Reserve Bank of Australia, which hurt the odds of rate cuts this year, with investors now waiting for more inflation and labor data. 

The Price 

The AUD/USD fell 0.5% today to 0.6662, with a session-high at 0.6709.

The Aussie lost 0.4% on Monday against the US dollar away from a four-month high at 67.14 cents. 

Aussie managed to gain 1.4% last week against the US dollar due to improving risk appetite back then.

The RBA

Earlier today, the Reserve Bank of Australia released the minutes of the meeting it held earlier this month, at which it maintained interest rates unchanged at 4.35%. 

The RBA said back then the priority was on bringing inflation towards the 2% target, however recent data point to persistent risks.

The RBA expects inflation to remain above targets for an extended duration, and could eventually reach such targets after 2026. 

Australian Rates

It looks clear that the RBA won’t be rushing to take big steps to change policies this year, thus it’s not likely for Australian interest rate cuts to occur this year. 

Gold prices rose on Monday to a fresh record high while the dollar inched up against most main rivals. 

Atlanta Fed President Raphael Bostic said the US GDP continues to slow down, which would drag inflation down, however he expects only one rate cut this year. 

Fed Chair Jerome Powell said last week that he expects US inflation to slow down in upcoming months, which would be a positive sign for markets as investors wait for rate cuts. 

Fed Deputy Chair Philip Jefferson said that the recent slowdown in inflationary pressures is encouraging, but it remains too early to determine whether inflation is sustainably backing away towards 2%. 

Otherwise, the dollar index rose 0.1% as of 20:39 GMT to 104.5, with a session-high at 104.6, and a low at 104.3. 

On trading, gold spot prices rose 0.6%, or $17.30 as of 20:40 GMT to $2434.4 an ounce. 

Most US stock indices rose on Monday to fresh record highs amid growing investor optimism about Fed rate cuts.

Atlanta Fed President Raphael Bostic said the US GDP continues to slow down, which would drag inflation down, however he expects only one rate cut this year. 

Fed Chair Jerome Powell said last week that he expects US inflation to slow down in upcoming months, which would be a positive sign for markets as investors wait for rate cuts. 

On trading, Dow Jones fell 0.1% as of 18:38 GMT, or 12 points to 39,991, while S&P 500 rose 0.3%, or 16 points to 5,320, as NASDAQ added 0.7%, or 119 points to 16,805. 

International benchmark Brent rose in American trade on Monday on track for the fourth profit in a row, marking two-week highs amid mounting political uncertainty in Iran after the death of the president in a helicopter crash incident, and after the deterioration of the health of the Saudi King. 

Risk appetite is improving in the market as US stocks scale record highs, which boosted investments in commodities and higher risk assets. 

Prices

Brent rose 0.6% today to $84.45 a barrel, a two-week high, with a session-low at $83.24. 

Brent closed Friday 0.65% higher, the third profit in a row away from a two-month low at $81.08. 

Brent also rose 1.5% last week, the first weekly profit in three days as the dollar declined and hopes grew for increasing Chinese demand.

Iranian President’s Death 

Iranian officials said today that President Ebrahim Raisi and his foreign minister both died in a helicopter crash in a mountainous area amid a heavy fog, with the rescue teams finding the site of the crash and confirming the deaths. 

King Salman’s Health 

Japanese officials said that Crown Prince Muhammad Bin Salman delayed his visit to Japan due to his father’s health deterioration. 

Saudi official media said that 88-years old King Salman is undergoing treatment for lung inflammation. 

Strong Appetite 

US stocks are trading at near record highs at the opening of this week, with Dow Jones marching above 40,000, setting a new record. 

A strong risk appetite continues to spread throughout the markets amid hopes for multiple Fed rate cuts this year.