Australian Dollar dives to multi-month low against USD amid bets for early RBA rate cut.
Australian Dollar dives to multi-month low against USD amid bets for early RBA rate cut.
The Australian Dollar (AUD) slumps to the lowest level since August against its American counterpart amid bets that slower domestic growth will put pressure on the Reserve Bank of Australia (RBA) to cut interest rates in early 2025. Adding to this, a private survey showed that China’s services sector grew less than expected in November. This, along with new US export curbs on China, concerns about China's fragile economic recovery and US President-elect Donald Trump's impending tariffs, turn out to be key factors weighing heavily on the China-proxy Aussie.
Furthermore, a modest US Dollar (USD) uptick, bolstered by expectations for a less dovish Federal Reserve (Fed), contributes to the AUD/USD pair's sharp intraday fall. Meanwhile, the USD bulls seem reluctant to place aggressive bets ahead of Fed Chair Jerome Powell's speech, which will be looked for more cues about the future rate-cut path. Even a positive tone around the equity markets fails to ease the bearish pressure surrounding the risk-sensitive Aussie. This, in turn, supports prospects for a further near-term depreciating move for the currency pair. (Cay)
Source: Fxstreet
