The Australian Dollar (AUD) strengthened against the US Dollar (USD) on Monday, currently trading in the 0.6620s. This rise comes after the release of disappointing US economic data last week.

• US Data Weakens US Dollar: Weaker-than-expected US jobs data, lower wage growth, and a decline in the US Services PMI contributed to a depreciation of the USD.
• RBA Meeting in Focus: The Reserve Bank of Australia’s (RBA) meeting on Tuesday is a key event for the AUD. Expectations are for the RBA to maintain interest rates, but a hawkish stance or even a surprise rate hike could further strengthen the AUD.

Potential for Further AUD Gains

Analysts predict a potential upside for the AUD/USD pair if the RBA adopts a hawkish stance:

• Surpassing the March high of 0.6686
• Reaching 0.6700

Overall, the future direction of the AUD/USD hinges on the outcome of the RBA meeting and its impact on the perception of future interest rate changes in Australia.