Aussie dollar trades near 10-month peak

The Australian Dollar edged lower to around $0.668 on Wednesday, but traded near its highest level since early November last year, as markets monitored the highly anticipated US Fed’s key policy decision.

The US dollar continued to struggle as markets fully priced in a quarter-point rate cut by the Federal Reserve this week.

However, the bigger focus will be the Fed’s updated dot plot, which could signal how many more cuts may follow amid weak jobs data, sticky inflation, and political pressure.

At home, investors await Thursday’s jobs report, expected to show 20K–25K new positions with unemployment steady at 4.2%, a key input for the RBA’s policy path.

Markets now assign minimal odds to a September cut, with November easing bets trimmed to 70% on the back of solid recent data.

On the geopolitical front, the US and China, Australia's top trading partners, reached a deal to place TikTok under US ownership, with final approval expected in a Friday call between Presidents Trump and Xi.