The Australian dollar appreciated to around $0.657 on Wednesday, hitting a five-week high, as a broadly weaker US dollar outweighed disappointing domestic GDP data. The figures showed Australia’s economy expanding less than expected, with Q3 growth at 0.4% versus a 0.7% forecast and annual growth at 2.1%, slightly below expectations. The softer data led traders to trim bets on the Reserve Bank of Australia turning more hawkish next year, with odds of a rate hike by end-2026 falling to roughly 50% from around 80% before the release. Attention now turns to next week’s policy meeting, where rates are widely expected to remain at 3.6% after three cuts this year. Governor Bullock also said the board is closely monitoring inflation and would act if price pressures re-emerge, even as projections point to a gradual easing. Meanwhile, global markets await the Federal Reserve’s policy meeting next week, widely expected to cut rates, with a dovish Fed chair outlook adding to US dollar weakness.