FX.co ★ Australian Dollar Hits One-Month Low

The Australian dollar has fallen below $0.650, reaching its lowest point in four weeks, due to a resurgence of risk-averse behavior in global markets. This decline was influenced by further sell-offs in technology stocks worldwide, spurred by valuation concerns and unease regarding US-China developments in AI trade. Typically regarded as a global risk indicator because of its dependency on commodity exports, the Australian dollar failed to capitalize on a weaker US dollar, even amid signs of a cooling US labor market. For the week, the Australian dollar is on track for a 1% decline, its first weekly drop in a month, partly due to the Reserve Bank of Australia's hawkish stance at its November meeting. While markets still generally anticipate one more rate cut, likely by May next year, some analysts suggest that the easing cycle might have already concluded with the cash rate remaining at 3.6%.