Markets await the Fed’s last rate decision of the year and expectations are high for a rate cut of 25 basis points. A tight labour market and cooling inflation is the perfect environment to relax monetary policy. US equities rebounded and look forward to the IRD. The US Dollar remained steady, with the EUR holding 1.1600, while the GBP drifted to 1.3300. The RBA left rates unchanged, as expected, citing inflationary pressures. Fiscal pressures have put the RBA into a tough position, with no option but to hold rates, and the Governor stated the next rate move may well be up in 2026. The AUD reacted accordingly, jumping above 0.6650 temporarily, while the NZD creeps toward 0.5800.
