FX.co ★ Australian Dollar Steady

The Australian dollar remained stable at approximately $0.666 on Tuesday, maintaining the upward momentum from the previous session. This stability is largely attributed to the declining likelihood of further interest rate cuts by the Reserve Bank of Australia. Current market assessments reflect an 86% chance that the central bank will maintain its current rate at the September meeting. This outlook is strengthened by a robust trade surplus in July, solid GDP growth in the second quarter, and heightened inflation in July. Furthermore, September saw a rise in consumer inflation expectations, which could indicate persistent domestic demand and potential resurgence in inflationary pressures. Concurrently, the Australian dollar received an additional boost from positive geopolitical developments. Notably, on Monday, the US and China reached a commercial agreement that proposes transitioning TikTok to US ownership, with final approval expected during an upcoming call between President Donald Trump and President Xi Jinping on Friday.