AUD Under Pressure, Data and New Deals in Focus
The Australian Dollar (AUD) weakened against the US Dollar ahead of the release of highly anticipated US inflation data for September on Friday. Markets were also cautious following the surprising Australian employment data, which saw the unemployment rate rise to its highest level in nearly four years. This caused the probability of an interest rate cut by the Reserve Bank of Australia (RBA) to jump sharply to 70%, up significantly from the previous 40%.
However, the AUD received a positive boost from US President Donald Trump's optimistic statement that an agreement would be reached with Chinese President Xi Jinping during their meeting in South Korea. The close trade relationship between Australia and China has significantly impacted the AUD's economic development.
Furthermore, progress on the US-Australia trade agreement has also boosted market sentiment. President Trump and Australian Prime Minister Anthony Albanese recently signed an $8.5 billion minerals deal aimed at securing access to Australia's rare earth resources. The massive investment by both countries in mining and processing projects has further fueled market optimism regarding Australia's economic prospects. (az)
Source: Newsmaker.id
