AUD/USD Poised for Gains as RBA Hikes Interest Rates
The start of this week has seen stocks, gold, silver, and Bitcoin fall in value, while crude oil rebounded and bond yields rose further. This decline is attributed to US President Trump's refusal to agree to Iran's proposal to re-open the Strait of Hormuz, which left markets disappointed.
However, reports indicate that mediators are expected to hold talks with both sides on an amended version of the 7-day proposal presented by Iran, keeping hopes alive for potential progress. Meanwhile, economic data will play a crucial role in shaping market expectations, particularly in regards to the upcoming October FOMC meeting.
The Australian dollar (AUD) is expected to perform well this week due to its relative strength and upcoming rate hike decision by the Reserve Bank of Australia (RBA). A 25bp rate hike to 4.60% is widely anticipated, with markets fully pricing in the move. The RBA's policy decision on Tuesday will be a key driver of market expectations for higher interest rates.