AUD/USD Held Back by Bearish Trend Amid Fed Rate Expectations
The Australian dollar (AUD) traded near 0.6940 in early European dealings on Friday, as market sentiment remained constrained by a prevailing bearish trend.
Market pricing indicates a nearly 74% probability of the Federal Reserve keeping interest rates steady in October, while still anticipating at least one more rate increase before the end of the year.
The expectations for a Reserve Bank of Australia (RBA) rate increase in November have dropped to around 20% after the latest Consumer Price Index data matched consensus estimates and housing indicators weakened.
Fundamental drivers suggest that investors are focused on U.S. labor market data for September, which could bolster the case for additional Federal Reserve tightening and offer further support to the U.S. dollar.