AUD Weakens Despite Near Trade Peace?
The Australian dollar weakened against the US dollar on Monday, despite opening higher due to positive sentiment from progress in US-China trade negotiations. Market participants remained cautious as the focus now shifts to key Australian data: September's monthly inflation and third-quarter economic data, released this week. These figures will significantly influence the market's view of the Reserve Bank of Australia's (RBA) next steps—whether they need to remain tight or begin loosening.
Globally, risk sentiment is actually improving. American and Chinese negotiators claim to have reached a preliminary agreement on major issues such as export controls, fentanyl, and shipping costs. This paves the way for a face-to-face meeting between President Donald Trump and President Xi Jinping on Thursday to finalize a trade deal. US Treasury Secretary Scott Bessent even said Trump's threat of 100% tariffs is "effectively off the table," and China has agreed to massive purchases of US soybeans and to suspend rare earth metal export controls for one year. For the AUD, this is important because the Australian economy is heavily dependent on the direction of the Chinese economy—so if China is stable, the AUD usually gets a boost. (az)
Source: Newsmaker.id
