FX.co ★ Aussie Dollar Firms Ahead of Trump–Xi Meeting

The Australian dollar advanced towards the $0.660 mark on Thursday, regaining some of the ground lost in the previous session, as investors looked forward to a crucial meeting between US President Donald Trump and Chinese President Xi Jinping. Anticipation of progress in the discussions buoyed the risk-sensitive Aussie, with expectations high for the two leaders to establish a trade ceasefire following months of tensions. Additional strength for the currency stemmed from a domestic inflation report that exceeded expectations, reducing the likelihood of imminent policy easing by the Reserve Bank of Australia. Market analysts now predict only about a 5% chance of a rate cut at the November 4 meeting and less than 20% for December, bolstering speculation that the central bank’s modest easing cycle might have concluded. Meanwhile, the Aussie’s gains were limited by the US dollar’s strength, following Federal Reserve Chairman Jerome Powell’s comments downplaying the prospects of another rate cut this year.