FX.co ★ Aussie Dollar Trades Near 10-Month Peak

The Australian Dollar saw a slight decline to approximately $0.668 on Wednesday, yet it remained close to its peak level since early November of the previous year. This comes as markets turned their attention to the US Federal Reserve's pivotal policy decision. The US dollar faced continued pressure as expectations solidified around a quarter-point interest rate reduction by the Federal Reserve this week. However, greater emphasis is on the Fed's updated dot plot, which could provide insights on the potential for additional rate cuts in light of weak employment figures, persistent inflation, and political influence. Domestically, attention is on Thursday's employment report, anticipated to reveal the creation of 20,000 to 25,000 new jobs, with the unemployment rate holding at 4.2%. This data is crucial for the Reserve Bank of Australia's policy considerations. Market projections now indicate slim chances of a rate cut in September, with November easing expectations reduced to 70% due to strong recent data. On the international front, the US and China, key trading associates for Australia, have agreed to a deal that will see TikTok transition to US ownership. Final approval of this arrangement is anticipated during a phone call between Presidents Trump and Xi on Friday.