• The Australian Dollar has recovered its daily losses after a Reuters poll indicated no change in the June meeting.
• 90% of economists anticipate stable rates in Q3, with a potential 25 basis-point reduction by the end of 2024.
• The US Dollar (USD) remains stable due to the hawkish stance of the Fed.

The Australian Dollar (AUD) has recovered from Friday's losses, possibly driven by improved risk appetite. This optimism stems from a Reuters poll of 43 economists, unanimously predicting that the Reserve Bank of Australia (RBA) will maintain current interest rates in June.

A significant 90% of economists anticipate stable interest rates in the next quarter, with a potential 25 basis-point reduction to 4.10% projected by the end of 2024. Furthermore, 63% of economists foresee interest rates declining to 4.10% or below by year-end, while a minority (35%) expect no change.

The US Dollar (USD) has maintained stability following gains from the previous session despite the release of economic data showing a softer US Producer Price Index (PPI) and higher-than-expected Initial Jobless Claims.

The US Dollar’s resilience is largely credited to the hawkish stance of the US Federal Reserve (Fed). At its June meeting on Wednesday, the Federal Open Market Committee (FOMC) kept its benchmark lending rate unchanged within the range of 5.25%–5.50%, marking the seventh consecutive meeting without a rate change, as widely anticipated.

Federal Open Market Committee (FOMC) policymakers have revised their outlook, now anticipating only one rate cut for the year, down from the three cuts forecasted in March. This adjustment is bolstering the US Dollar's (USD) resilience and exerting pressure on the AUD/USD pair.

Investors are awaiting the release of the preliminary US Michigan Consumer Sentiment index on Friday. This key indicator will offer additional insights into consumer confidence and the broader economic outlook