# The Australian dollar is grinding higher as expectations for rate cuts from the US Federal Reserve build

> The Australian dollar rose on Friday as expectations for US Federal Reserve rate cuts built and the greenback weakened. The currency held those gains in early trade Monday, despite rising risk aversion in equities, bonds and commodities. The archived article is from June 2019, though the Wayback Machine capture is dated 2023.

- Date: 2019-06-02 · published 2019-06-02T12:00:00.000Z
- Category: macro · region Global · magnitude low
- Page: https://feedsoft.ai/events/58849-the-australian-dollar-is-grinding-higher-as-expectations-for-rate-cuts-from-the
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md), [Australian Dollar (USD per AUD)](https://feedsoft.ai/c/AUDUSD.md)

## Why it matters

A weaker US dollar on Fed rate-cut expectations generally supports dollar-priced commodities, including grains and oilseeds. The AUD move is largely driven by dollar weakness rather than Australia-specific fundamentals.

## Read by commodity

- DXY: bearish ▼
- AUDUSD: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2024-08-26 | [Interest rates: US dollar sinks as traders position for rate cuts by the Federal Reserve](https://feedsoft.ai/events/28691-interest-rates-us-dollar-sinks-as-traders-position-for-rate-cuts-by-the-federal.md) | +0.7% | -0.0% |
| DXY | 2025-09-01 | [Stocks hit fresh record high but US dollar weakens as Fed rate cut expectations gain momentum](https://feedsoft.ai/events/23517-stocks-hit-fresh-record-high-but-us-dollar-weakens-as-fed-rate-cut-expectations.md) | -0.1% | -0.1% |
| DXY | 2020-02-27 | [Dollar struggle owes to build up of Fed rate cut expectations - Credit Argricole](https://feedsoft.ai/events/54779-dollar-struggle-owes-to-build-up-of-fed-rate-cut-expectations-credit-argricole.md) | -0.5% | +6.3% |
| DXY | 2022-12-01 | [Australian dollar races up after US Federal Reserve chairman Jerome Powell hints at smaller rate increases](https://feedsoft.ai/events/38484-australian-dollar-races-up-after-us-federal-reserve-chairman-jerome-powell.md) | -0.6% | -1.5% |
| DXY | 2019-11-01 | [Analysis When the US Federal Reserve acts, the Australian economy braces for damage](https://feedsoft.ai/events/56332-analysis-when-the-us-federal-reserve-acts-the-australian-economy-braces-for.md) | +0.2% | +0.9% |

## Sources

- web.archive.org: https://web.archive.org/web/20190807004722/www.businessinsider.com.au/fx-currency-aud-australia-dollar-fed-trade-war-china-2019-6

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.