AUD/USD oversteps 0.7500 on positive market sentiment, RBA’s monetary policy eyed

The AUD/USD pair has displayed a bullish open-drive session on Monday in which the asset initiates advancing right from the first tick of the trading session. The expectations of a ceasefire between Moscow and Kyiv have expanded strongly after the negotiators from the counterparts sounded positive.

Ukrainian Foreign Minister Dmytro Kuleba said Russian negotiators have not agreed to the draft documents in writing but did give a verbal answer on all Ukrainian positions, according to Arakhamia. While, David Arakhamia, head of the Ukrainian delegation at the talks cited that Russia is agreed to all of Ukraine’s positions, except on Crimea.

Also, Russian leader Vladimir Putin and Ukrainian President Volodymyr Zelenskyy will meet after the draft of a special document containing the ceasefire stipulations.

Apart from the positive undertone, aussie is performing stronger on rising commodity prices. Australia, being a major exporter of iron ore, energy, and other commodities is benefitting from the elevated material prices.

On the dollar front, the US dollar index (DXY) is performing subdued on heightening risk-on impulse. However, the expectations of a 50 basis point (bps) interest rate hike have increased sharply on the falling US jobless rate. The Unemployment Rate at 3.6% since January is indicating an achievement of full employment on a consistent basis, which may call for an aggressive interest rate hike by the Federal Reserve (Fed).

Going forward, the interest rate decision from the Reserve Bank of Australia (RBA) on Tuesday will be the mega event this week. The RBA is likely to hold the interest rates and will bank upon a ‘wait and watch’ policy until price pressures soar. While, the US docket will release the Federal Open Market Committee (FOMC) minutes on Wednesday, which will dictate the rationale behind the decision-making by the Fed’s policymakers.