The Australian Dollar depreciated as China's fiscal stimulus plan failed to boost the market sentiment.
The ANZ-Roy Morgan Consumer Confidence index remained steady at 83.4 this week.
The US Dollar receives support from the fading likelihood of further bumper rate cuts by the Fed.
The Australian Dollar (AUD) remains subdued against the US Dollar (USD) on Tuesday, weighed down by weak trade balance data from China, Australia's largest trading partner, released on Monday. Furthermore, China's fiscal stimulus plan, announced over the weekend, failed to boost the Aussie Dollar, as investors were left uncertain about the scale of the package.
The Australian weekly survey of Consumer Confidence showed little movement, with the ANZ-Roy Morgan Consumer Confidence index remaining steady at 83.4 this week. Despite the unchanged figure, the longer-term trend shows that Consumer Confidence has been below the 85.0 mark for a record 89 consecutive weeks. The current reading is 1.3 points higher than the 2024 weekly average of 82.1.
The US Dollar (USD) gains support from increasing expectations that the US Federal Reserve (Fed) will avoid aggressive interest rate cuts. According to the CME FedWatch Tool, markets are currently pricing in an 83.6% probability of a 25-basis-point rate cut in November, with no anticipation of a larger 50-basis-point reduction.
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