AUD/USD mildly declines to 0.6660 on Monday. Markets await latest RBA and Fed meeting minutes for additional guidance. On Monday, the US reported ISM PMIs that showed no surprises. Monday's session recorded a moderate slip in the Australian Dollar value against the US Dollar. As a result of persistently high inflation in Australia and some signs of softening in the US, meeting minutes from both the Federal Reserve and the Reserve Bank of Australia will be closely watched this week.
Market sentiment – whether investors are taking on more risky assets or seeking safe-havens – is also a factor, with risk-on positive for AUD. How do the decisions of the Reserve Bank of Australia impact the Australian Dollar? The Reserve Bank of Australia influences the Australian Dollar by setting the level of interest rates that Australian banks can lend to each other. This influences the level of interest rates in the economy as a whole.