Breaking: AUD/USD jumps to 0.6765 on expected RBA rate cut by 25 bps to 0.75%

FXStreet Team FXStreet

The Reserve Bank of Australia (RBA), at its October monetary policy meeting held on Tuesday, cut its official cash rate (OCR) by 25bps at a record low of 0.75%, as widely expected.

According to the latest Reuters poll, “as many as 25 of 35 economists, or 71% of those surveyed, expect the Reserve Bank of Australia (RBA) to ease its benchmark rate at its Oct. 1 meeting.”

The decision was on expected lines but did help the Australian Dollar, with the AUD/USD pair extending the recovery above the 0.6750 from four-week lows of 0.6733.

About RBA Rate Decision

RBA Interest Rate Decision is announced by the Reserve Bank of Australia. If the RBA is hawkish about the inflationary outlook of the economy and rises the interest rates it is positive, or bullish, for the AUD. Likewise, if the RBA has a dovish view on the Australian economy and keeps the ongoing interest rate, or cuts the interest rate it is seen as negative, or bearish.

Author

FXStreet Team

FXStreet

Composed of a group of economic journalists and FX experts, the FXStreet content team produces and oversees all content published on FXStreet. It provides a purely journalistic approach to the Forex market.

GBP/USD clings to gains near 1.3400

GBP/USD retreats after reaching a three-week high above 1.3430, challenging the 1.3400 yardstick on Thursday. Although easing political uncertainty in the UK helps the quid limit its downside, escalating tensions in the Middle East support the Greenback, keeping Cable under scrutiny.

EUR/USD: Daily gains appear capped by 1.1450

EUR/USD keeps the recovery in place and looks to consolidate its gains north of 1.1400 the figure at the end of the NA session on Thursday. The pair’s move higher appears in tandem with a modest pullback in the US Dollar despite geopolitical concerns in the Middle East remain unabated.

Gold holds steady above $4,100 amid subdued USD price action

Gold struggles to capitalize on the previous day's positive move, though it holds above $4,100 during the Asian session on Friday as traders await further developments surrounding the US-Iran saga. The geopolitical risk premium resurfaced amid a fresh escalation of tensions between the US and Iran, which supports the safe-haven US Dollar and acts as a headwind for the bullion. However, less hawkish FOMC Minutes keep USD bulls on the defensive and help limit downside for the non-yielding yellow metal.

BitGo unveils quantum risk management tools for Bitcoin wallets

BitGo has introduced a suite of quantum risk management tools for institutional Bitcoin wallets, aiming to help clients identify, assess and reduce potential exposure to future quantum computing threats before they become a practical concern.

Japan may be changing its Yen strategy, but markets don’t look scared

Japan may be changing its intervention playbook, but that might not be enough to rescue the battered Yen. With USD/JPY hovering at four-decade highs, the currency’s weakness is being driven less by speculative pressure and more by a powerful structural force: the wide US-Japan rate gap.

Bye, forward guidance: How to trade when central banks choose silence

Central banks have spent years telling markets what might come next. Now, traders face the possibility that they say a lot less. From the Federal Reserve to the European Central Bank and the Bank of England, policymakers are pushing back against forward guidance.