AUD Edges Lower as Fed Hike Bets Grow Ahead of Trump-Xi Summit

The Australian Dollar has edged lower against the US Dollar as interest rate hike bets have grown ahead of this week's Trump-Xi summit in Washington. The Fed raised its benchmark interest rate by a quarter point last week, citing high inflation and signaling more hikes to come.

Markets are now pricing in nearly 56.5% chance of another US rate hike when the Fed meets next in October, up from nearly 42.5% a week ago, according to CME FedWatch tool.

The Australian job data is expected this Thursday, with the Unemployment Rate projected to remain unchanged at 4.5% in August and the number of employed people expected to rise by 20,000 during the same period.