**AUD/USD Weekly Outlook: All Eyes on Potential RBA Rate Cut**
The Australian dollar faces a pivotal week as traders anticipate a possible interest rate cut by the Reserve Bank of Australia (RBA). Recent domestic data, including softer inflation figures and slowing retail sales, have bolstered expectations that the RBA could ease monetary policy at its upcoming meeting. As market participants position themselves ahead of the decision, the AUD/USD pair has experienced heightened volatility, with investors closely monitoring any policy signals from central bank officials.
Globally, the Australian currency remains under pressure amid renewed strength in the US dollar, which is supported by robust US economic indicators and speculation about the timing of Federal Reserve policy moves. Should the RBA deliver a rate cut or signal dovish guidance, the AUD/USD could extend its recent declines. Conversely, a surprise hold or less dovish tone might provide the Aussie with brief respite. Ultimately, market sentiment this week hinges on the RBA’s decision and incoming economic data from both Australia and the US.
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