Tech Selloff Pressures Aussie
The Australian dollar weakened below $0.650—a four-week low—as risk-off sentiment swept global markets. A sell-off in technology stocks due to valuation concerns and renewed tensions over the US-China AI trade war weighed on risk assets. The Aussie, often used as a risk proxy due to its reliance on commodity exports, was also dragged down.
Interestingly, the AUD did not strengthen despite the US dollar weakening following signs of a weakening US labor market. Sentiment pressures were more dominant, keeping the pair under pressure. On a weekly basis, the AUD is headed for a decline of around 1%, marking its first negative week in a month.
On the policy front, the RBA's hawkish tone at its November meeting helped temper expectations of rapid easing. The market still envisions one more rate cut—possibly in May of next year—but some analysts believe the easing cycle could end with the benchmark interest rate remaining at 3.6%. The next focus: US-China headlines and US data that could drive risk appetite. (az)
Source: Newsmaker.id
