Aussie Strengthens, Markets Eye Xi–Trump Signals
The Australian dollar strengthened towards $0.660 on Thursday (October 30), recovering some of its earlier losses. Sentiment improved as investors awaited the outcome of the Donald Trump–Xi Jinping meeting, which is expected to formalize a trade truce—usually good news for risk assets like the Aussie. Additional support came from hotter-than-expected Australian inflation, reducing the chances of a quick easing from the RBA.
The market now only prices around a 5% chance of a rate cut on November 4 and <20% for December, fueling speculation that the RBA's easing cycle is nearing its end. However, the Aussie's gains were limited by the strengthening US dollar after Fed Chair Jerome Powell downplayed the chances of another rate cut this year. (az)
Source: Newsmaker.id