The Australian dollar is on course for its longest weekly winning streak against the US dollar since 2021, with AUD/USD advancing for a sixth consecutive week. The move followed first-quarter consumer price inflation of 3.6% year-on-year, above the 3.4% forecast, while core inflation reached 4.0%. The data lifted the implied probability of a 25-basis-point Reserve Bank of Australia (RBA) rate increase at its June meeting to 50%, from 20% before the release, after the RBA held its cash rate at 4.35% in April. A weaker US dollar, expectations that the Federal Reserve could cut rates later this year, and firmer iron ore and copper prices have also supported the currency. AUD/USD is near 0.6550, up roughly 2% over the past month, and has moved above its 200-day moving average, though resistance near 0.6600 and the risk of a short-term overextension remain. The outlook depends on future data, including April employment figures, the RBA’s May meeting minutes, central-bank policy and global risk sentiment. A stronger Australian dollar may reduce import costs and inflation but could pressure exporters’ profit margins.