FX.co ★ Aussie Dollar Gains on US-China Deal

The Australian dollar climbed to approximately $0.653 on Monday, driven by optimism regarding advancements in the US–China trade negotiations. Reports suggest that the two dominant global economies have reached a preliminary agreement on several significant issues, including export controls, regulation of fentanyl, and shipping tariffs. This development sets a favorable stage for Presidents Donald Trump and Xi Jinping to potentially solidify a deal later this week. Such a meeting is highly anticipated as it could significantly lower the probability of an all-encompassing global trade war, which has posed a threat to industries worldwide. Additionally, the United States and Australia finalized an agreement on critical minerals last week, a move that Presidents Trump and Albanese have positioned as a strategic initiative to diminish US dependence on China. Domestically, investor focus is shifting towards the forthcoming Q3 inflation data and the September Monthly CPI report. These figures are anticipated to provide essential insights into the Reserve Bank of Australia’s upcoming policy decisions.