Australian dollar falls while the US dollar remains strong ahead of the presidential election.
The Australian Dollar (AUD) fell against the US Dollar (USD) for the third straight session on Tuesday. Traders now focusing on Australia’s third-quarter Consumer Price Index (CPI) data. Which is set to be release on Wednesday, as they seek further insight into the Reserve Bank of Australia’s (RBA) probable monetary policy path.
The Australian Dollar’s fall may limited because an RBA rate cut is unlikely in the short term.
The AUD’s fall could be capped by The Reserve Bank of Australia’s aggressive policy outlook. The RBA stated that the current cash rate of 4.35% restrictive enough. To keep inflation within the target range of 2%-3% while also sustaining employment. As a result, a rate cut improbable in the immediate future, particularly as early as next month.
US dollar rises as recent favorable US data reinforces the notion that the Fed will decrease nominal interest rates.
The US Dollar (USD) strengthens as solid US economic data from last week suggest the economy’s sustained resiliency. This reinforces the perception that the Federal Reserve (Fed) will decrease nominal interest rates in November.
Traders are anticipating the release of the preliminary US Q3 GDP statistics and October’s Nonfarm Payrolls (NFP) report. Which might provide crucial insights into the timing and pace of the Federal Reserve’s The Federal Reserve projected rate cuts.
Daily Market Movers: The Australian dollar falls as the US dollar gains ground.
According to the CME FedWatch Tool, there is a 95.8% chance. That the Fed will lower interest rates by 25 basis points in November, with no expectation of a larger 50 basis point decrease.
ANZ – Roy Morgan Australia’s consumer confidence fell to 86.4 last week, down from 87.5 the prior week.
Australia’s 10-year government bond yield is hovering around 4.5%, matching an increase in US bond yields. This surge being driven by market sentiment favoring former President Donald Trump in the forthcoming US presidential election. As well as predictions that the Fed will take a more cautious approach to future rate decreases.
According to polling website FiveThirtyEight, Trump’s chances of winning the US election have improved to 52%, vs 48% for Vice President Kamala Harris.
Over the last three weeks, former President Donald Trump’s allies have suffered at least ten court defeats in crucial battleground states, potentially influencing the outcome of the November 5 election between Republican nominee Trump and Democratic opponent, Vice President Kamala Harris.
Iran’s Foreign Ministry spokeswoman, Esmaeil Baghaei, recently stated that the country may use “all available tools” to respond to Israel’s recent attacks.
Iran’s Foreign Ministry spokeswoman, Esmaeil Baghaei, recently stated that the country may use “all available tools” to respond to Israel’s recent attacks on Iranian military targets, implying that the situation could worsen further. Such pronouncements raise global uncertainty, increasing investor demand for safe-haven assets like the US dollar as they prepare for potential confrontation.
Last week, Federal Reserve Bank of San Francisco President Mary Daly noted in a post on social media. Platform X reports that the economy is plainly in better shape. With inflation falling dramatically and the job market reverting to a more sustainable course.
Last week, RBA Deputy Governor Andrew Hauser emphasized the country’s high labor participation rate and stated. That while the RBA relies on data, it is not unduly concerned about it.
