Australian dollar fell further in Tuesday’s Asian session.
The Australian Dollar (AUD) falls on Tuesday, driven by statements from the National Development and Reform Commission press conference. According to China’s state planner, the country’s economy is dealing with more complicated internal and external situations. Furthermore, the risk-off mood resulting from the growing geopolitical tensions in the Middle East may put some selling pressure on riskier assets like the AUD for the time being.
RBA’s hawkish statements boosted the Aussie, but fears of geopolitical threats may limit its gains.
The RBA hawkish tone may limit the pair’s downside. of the Reserve Bank of Australia (RBA), after the September Meeting Minutes.
Investors will be watching what the Fed says later on Tuesday.
Looking ahead, investors are expecting Fedspeak later on Tuesday to provide new impetus ahead of the Federal Open Market Committee (FOMC) Minutes. On Thursday, attention will move to the September US Consumer Price Index (CPI).
Daily Market Movers: Australian Dollar Loses Ground Following China’s NDRC Press Conference.
According to the RBA September Meeting Minutes, which issued on Tuesday, board members reviewed future prospects for interest rate reduction and increase.
“Policy will need to remain restrictive until Board members are confident inflation is moving sustainably towards the target range,” according to the Reserve Bank’s Minutes.
RBI Deputy Governor Andrew Hauser stated that the Australian central bank will act once inflation stops being excessive.
and sticky, noting that decreasing inflation is a big challenge that we have not yet done.
St. Louis Fed President Alberto Musalem stated that he supports further interest rate decreases as the economy progresses.
On Monday, St. Louis Fed President Alberto Musalem stated that he supports further interest rate decreases as the economy progresses. According to Reuters, Musalem also indicated that monetary policy will be determined by performance.
Minneapolis Fed President Neel Kashkari said on Monday that he backed the Fed’s decision to drop rates by 50 basis points, noting that the balance of risks had switched from “high inflation to possibly higher unemployment.”
According to the CME FedWatch Tool, markets are pricing in roughly an 85% possibility of a 25 basis point Fed rate drop in November, up from 31.1% last week.
