FX.co ★ Australian Dollar Extends Rally

The Australian dollar climbed beyond $0.650 on Thursday, continuing its upward trend for the third straight session. This movement was fueled by moderated expectations regarding a potential immediate rate cut by the Reserve Bank of Australia. Current market pricing indicates an anticipated additional easing of approximately 34 basis points throughout the rest of 2025, with the probability of a rate move in September dropping to around 25%. Analysts predict that the central bank will likely hold off until its November meeting before restarting its rate-cutting actions. Additionally, the Aussie benefitted from a weakening US dollar, as traders increased their wagers on a September rate cut by the Federal Reserve, following a statement from New York Fed President John Williams that suggested this was a possibility. Sentiment was further influenced by President Donald Trump’s attempt to increase his influence over the Federal Reserve by seeking to replace Fed Governor Lisa Cook with a more dovish candidate. Further boosting the optimistic atmosphere, domestic data revealed an uptick in business investment during the June quarter, with notable contributions from the sectors of data centers and logistics.