The Australian dollar remained below $0.625 on Thursday, following a nearly 2% slump in the previous session, marking its weakest level since October 2022.
Aussie dollar languishes at over two-year low
The decline came after the U.S. Federal Reserve delivered a widely anticipated 25 basis point rate cut on Wednesday and signaled only two additional cuts next year, down from the four previously forecast in September. Additional pressure on the Aussie stemmed from disappointing Chinese economic data and concerns about potentially higher U.S. tariffs under the incoming Trump administration, given Australia’s close trade ties with China.
Eyes on RBA moves
Domestically, traders moved up their expectations for the Reserve Bank of Australia’s first rate cut, amid growing signs of a slowing economy.
