Australian Dollar on 3-Session Winning Streak

The Australian dollar edged higher to around $0.661 on Tuesday, marking its third consecutive session of gains, as markets dialed back expectations for near-term easing by the Reserve Bank of Australia.

RBA Governor Michele Bullock recently indicated that rates will likely remain on hold as stronger consumer spending and rising inflation, particularly in housing and services, reduce the need for cuts.

Investors now price in only about a 40% chance of a 25-basis-point rate cut in November, down from near certainty a month ago.

On the economic front, the Westpac-Melbourne Institute Consumer Sentiment Index fell 3.5% month-on-month to 92.1 in October, marking the steepest contraction since April and reflecting rising household concerns over persistent inflation.

Adding to the economic headwinds, ANZ-Indeed Australian Job Ads dropped 3.3% in September, marking the third consecutive monthly decline and the sharpest since February 2024, fueling worries about the labor market outlook.