FX.co ★ Australian Dollar Rebounds

The Australian dollar experienced a rise towards $0.653 on Monday, recovering from the steep losses it faced the previous week. This gain was attributed to improved investor sentiment, which was bolstered by conciliatory remarks from President Donald Trump amidst escalating US-China trade tensions. In a post on Truth Social, President Trump assured that trade relations with China "will all be fine," indicating a willingness to engage in discussions and potentially meet with President Xi. These comments helped alleviate concerns following Trump's decision to implement 100% tariffs and impose software restrictions starting November 1. On the domestic front, investors are keenly monitoring the release of the Reserve Bank of Australia's (RBA) meeting minutes, upcoming addresses by central bank officials, and crucial labor market data anticipated in the coming days. Recently, Governor Michele Bullock highlighted the ongoing issues related to persistent inflation and reaffirmed that monetary policy would remain data-driven. Currently, market expectations are pricing in only a roughly 52% likelihood of a 25 basis point rate cut during the RBA's November meeting.