The Australian dollar weakened to below $0.645 on Wednesday, marking its third straight session of losses to hit a nearly three-week low, as the greenback continued to regain strength ahead of key US events. Markets turned cautious before the release of the Federal Reserve’s July meeting minutes and Fed Chair Powell’s speech at the Jackson Hole symposium. Markets currently pricing in an 85% chance of a September Fed rate cut and about 54 bps of easing by year-end. In Australia, consumer sentiment soared to its highest in nearly four years, boosted by the Reserve Bank of Australia’s third rate cut in 2025 that lowered the cash rate to 3.6%. The surge adds some support for the Aussie even as markets continue to price in further easing. Markets now see a high probability of another rate cut by November—possibly lowering the rate to around 3.35%—and some forecasts extend bets to two or three cuts by year-end. Investors now await upcoming PMI data for clues on Australia’s economic momentum.