The AUD/USD pair is on an upward trend.
The Australian dollar is gaining strength against the US dollar this Tuesday, with the current AUD/USD exchange rate at 0.6354.
The Aussie has reached its weekly peak, thanks to a decline in US government bond yields and reduced geopolitical risks.
Investor focus is keenly set on the Reserve Bank of Australia's statements and actions. Following recent assertive moves by the RBA toward achieving its fiscal objectives, traders are hopeful that the central bank might adopt a more relaxed stance.
This week, Australia's macroeconomic calendar is packed with activity. Today, PMI reports were already released. The October manufacturing PMI dropped to 48.0 points from the previous 48.7 points, indicating a decline in business activity. The services PMI also fell to 47.6 points from 51.8 points, further suggesting a dip in business activity.
Inflation figures should not be overlooked. On Wednesday, the Q3 consumer inflation data is set to be released. The CPI is expected to decrease to 5.2% year-on-year from 6.0%. On a quarterly basis, inflation might have risen to 1.1% from the previous 0.8%. Strong inflation data could bolster the Australian dollar.