Australia: Aussie Dollar Gains Amid Rising Inflation Outlook.

The Australian dollar rose to around $0.66 on Thursday, building on the prior session’s gains, as higher inflation expectations reinforced the Reserve Bank of Australia's hawkish stance. Consumer inflation expectations rose to 4.8% in October 2025 from 4.7% in September, the highest since June, amid concerns that Q3 inflation could surpass forecasts. The uptick, driven by the rollback of subsidies, elevated labor costs, and global trade and commodity pressures, adds to signs of lingering price pressures. This reinforces the central bank’s cautious stance, which is expected to hold its policy rate steady after keeping it at 3.6% in September, citing persistent inflation and a tight labor market. Meanwhile, upside was capped by a firmer US dollar as investors continued to weigh the impact of the ongoing government shutdown, which fueled safe-haven demand. Markets now await comments from Fed Chair Jerome Powell later today after the FOMC meeting showed mixed views on future rate moves.