28.10.202502:24:43UTC+00Australian Dollar Hits Near 3-Week High

On Tuesday, the Australian dollar climbed to approximately $0.656, marking its highest point in nearly three weeks, bolstered by a weakening US dollar. The decline of the greenback came in anticipation of the Federal Reserve meeting on Wednesday, in which a 25 basis point rate cut is expected. Additionally, optimism surrounding a potential US-China trade agreement further suppressed the demand for safe-haven assets. In Australia, attention is now focused on the release of third-quarter inflation figures and the September monthly Consumer Price Index (CPI) report, scheduled for Wednesday. These releases may provide further clarity on the direction of interest rates. Market speculation for an interest rate cut has markedly decreased, with only a 15% likelihood currently factored in, a notable drop from 60%. This shift occurred after Reserve Bank of Australia Governor Michele Bullock emphasized that the labor market remains "a little tight," despite the unemployment rate rising above the central bank's expectations.