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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.
AUD/USD weakens below mid-0.6800s, hitting a 10-month low during the Asian session on Thursday as the possibility of a jumbo Fed rate hike in December helps the US Dollar hold near its highest level since April 2025. Geopolitical uncertainty also supports the safe-haven buck, while the RBA’s cautious, on-hold stance weighs on the Aussie.
USD/JPY retreats slightly from an over two-month high as the recent surge back to the 160.00 psychological mark prompted verbal warnings from Japanese authorities and sparked fears of direct FX intervention. Moreover, data showed that Japan’s wholesale inflation picked up again in October, strengthening the case for a BoJ hike in December and lifting the Japanese Yen. However, a bullish US Dollar, bolstered by odds of a jumbo Fed rate hike in December, could support the currency pair.
Gold bounces off a one-week low, touched during the Asian session on Thursday, though the upside remains capped. The US Dollar pauses for a breather following the latest leg up to its highest level since April 2025, supporting the commodity. However, Fed rate hike expectations and the possibility of a jumbo 50 bps rate increase favor USD bulls, keeping the non-yielding bullion capped near $4,000.
USD/JPY climbs above the 159.00 resistance level, extending its advance on Wednesday, and bringing the Japanese Yen back toward its weakest levels in ten weeks amid renewed strength in the US Dollar. The move reflects a sharp repricing of Federal Reserve interest rate expectations following hawkish comments from Fed Governor Christopher Waller and stronger-than-expected US consumer inflation data.
Brent crude has fallen about a third since mid-October on hopes the Iran war is ending, but diesel, freight and fertiliser costs haven't followed. Those costs reach US consumer prices in stages through 2027 and could keep inflation high after gasoline gets cheaper.
