The Australian dollar rose on Thursday, hitting 0.6590 in Asia market hours. This shift occurred as the optimism bloomed when both American and Chinese leaders, President Trump and Mr. Xi, began discussions. Reports suggest discussions went well, covering topics like trade duties, soybeans, and specialized minerals, alongside TikTok. This good news gave investors confidence, so they embraced riskier ventures, consequently lifting the Australian dollar.
In addition to unexpectedly persistent inflation during the summer, August saw an increase in prices for consumers across the country. As a result, discussions about the Reserve Bank of Australia cutting interest rates quickly subsided. Despite a slight increase in unemployment, Governor Michele Bullock emphasized that the labor market remains strong.
Midweek saw the Federal Reserve ease credit—a slight cut of 0.25%. However, Jerome Powell didn’t promise another drop in December. Consequently, investors are now studying fresh economic data as they rethink plans.
