2025.09.1202:23:37UTC+00Aussie Dollar Heads for Strong Weekly Gain

The Australian dollar edged lower to approximately $0.67 on Friday yet remained close to its peak since early November 2024. It is poised to record its strongest week since April, bolstered by an increased appetite for risk amid growing anticipations of US interest rate cuts. Recent US data indicated stable inflation for August, alongside jobless claims that suggested weakness in the labor market. The surge in metal prices, especially gold and silver, further provided support to the commodity-driven currency. On the domestic front, consumer inflation expectations rose in September, after hitting a recent low the previous month, hinting at stronger demand and renewed inflation pressures. RBA Governor Michele Bullock mentioned signs of "a little bit more growth" in the private sector, which she viewed as a positive trajectory for the economy. This supports the Reserve Bank of Australia's cautious approach, with market expectations leaning towards rates remaining unchanged later this month. Investors are now keenly awaiting labor market data due next week, which will offer further insights into future monetary policy decisions.