Australian dollar tests ten-month highs
The Australian dollar edged higher to around $0.662 on Thursday, approaching its highest level since early November last year, supported by improved risk appetite amid growing bets on a Fed rate cut.
The Federal Reserve appears on track for a September rate cut after US producer prices fell unexpectedly in August, fueling expectations of deeper easing. Investors now await consumer inflation data for further guidance.
The commodity-linked Aussie also continued to benefit from higher oil and bullion prices as rising geopolitical risks drove safe-haven demand.
On the data front, Australian consumer inflation expectations rose to 4.7% in September from a five-month low of 3.9%, reflecting resilient household demand and stronger private sector growth, though the RBA remains cautious amid domestic and global uncertainties.
Looking ahead, a speech from an RBA official later today will be closely watched for further policy cues, as markets broadly priced in a 25bp cut in November.
UCapital Asset Management LLP or group companies may have commercial relationships with the companies mentioned. This content is not financial advice.
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