Aussie Muted Ahead of Key Economic Data

The Australian dollar was subdued around $0.651 as investors cautiously awaited a flurry of data in Australia this week that could provide clues on the economy and monetary policy path, including the fourth quarter gross domestic product report.

Last week, data showed that the country’s monthly inflation CPI held at a two-year low of 3.4% in January, unchanged from December and coming in below forecasts of 3.6%.

On the monetary policy front, minutes of the Reserve Bank of Australia’s last meeting showed that policymakers debated the possibility of raising rates further at its February policy meeting, but ultimately decided to maintain current monetary settings given signs of moderating inflation.