2025.09.0902:20:00UTC+00Australian Dollar Rallies to Over 1-Month High

The Australian dollar advanced beyond $0.66 on Tuesday, marking its third straight day of upward movement and achieving its highest point in over a month. This upward trend was driven by a weaker U.S. dollar, as anticipation grows for more aggressive interest rate cuts by the Federal Reserve. Currently, markets are calculating an 89% chance of a 25 basis point cut at next week's meeting, with some traders even anticipating a more significant 50 basis point reduction. Domestically, the economic landscape showed a decline in sentiment, with the Westpac-Melbourne Institute Consumer Sentiment Index decreasing by 3.1% to 95.4 in September, which negates the 5.7% rise in August that had brought the index to its peak since early 2022. The current data highlights the continuing dominance of consumer pessimism over optimism, reflecting ongoing worries about domestic demand. Simultaneously, the NAB Business Confidence Index fell to a three-month low of 4 in August 2025, down from an upwardly revised 8 the previous month — the highest reading since August 2022.