The Australian dollar strengthened to around $0.650 on Monday, extending gains from the previous session amid optimism over a potential breakthrough in US-Australia trade talks. Prime Minister Anthony Albanese is scheduled to meet with US President Donald Trump in Washington, where he will present Australia’s extensive critical mineral reserves as a key alternative to counter China’s rare earth supply curbs. The Prime Minister is expected to pursue a bilateral accord on critical minerals cooperation, while also reaffirming the United States’ strategic commitment to the AUKUS pact, under which Australia is set to receive support from the US in obtaining nuclear-powered submarines. On the domestic front, investors are closely watching speeches from RBA officials later this week for clues on the direction of monetary policy, especially as expectations for a potential rate cut have intensified following an unexpected rise in the unemployment rate.
