FX.co ★ Aussie Dollar Gains as RBA Flags Hotter Inflation

The Australian dollar rose to approximately $0.650 on Wednesday, rebounding from some previous losses. This shift came as investors assessed comments from a high-ranking official at the Reserve Bank of Australia (RBA) related to inflation trends that surpassed expectations. Assistant Governor Sarah Hunter highlighted that recent economic indicators have been slightly more robust than anticipated, suggesting that third-quarter inflation might surpass prior forecasts. Her statements aligned with the RBA's minutes from Tuesday, which indicated that policymakers see no immediate need to cut interest rates in light of persistent inflation in services and stable employment figures. Currently, the market sees the probability of a rate cut at the November 4 meeting as roughly 50%, while the likelihood for December has decreased to about 60% from a previous 70%, as traders await crucial economic data releases, including third-quarter inflation figures at the month's end and upcoming labor statistics. Concurrently, recent data revealed that Australia's Westpac-Melbourne leading economic index remained unchanged in September, suggesting a slowing but steady growth pattern anticipated through early 2026.