FX.co ★ Aussie Dollar Gains on Trade Talk Optimism

The Australian dollar rose to approximately $0.650 on Monday, continuing its upward trend from the previous session. This boost is fueled by optimism surrounding potential progress in trade negotiations between the United States and Australia. Prime Minister Anthony Albanese is set to meet with U.S. President Donald Trump in Washington. During this meeting, he plans to highlight Australia's substantial critical mineral reserves as a significant alternative to China's restrictions on rare earth supplies. The Prime Minister aims to establish a bilateral agreement focusing on cooperation in critical minerals while also reinforcing the United States’ strategic commitment to the AUKUS pact. This pact includes U.S. support for Australia in acquiring nuclear-powered submarines. Domestically, attention is directed towards upcoming speeches by officials from the Reserve Bank of Australia (RBA) later this week. Investors are seeking insights into the future direction of monetary policy, especially since expectations for a potential interest rate cut have increased following an unexpected rise in the unemployment rate.