Australian Dollar Halts 3-Day Rally

The Australian dollar held near $0.70 after a three-session rally as investors awaited key central bank updates for clues on the policy outlook. The Federal Reserve is due to release minutes from its September meeting and hear from several policymakers this week, while markets are pricing in around an 80% chance of no rate change this month following a weaker-than-expected labor market report. Meanwhile, the US dollar weakened broadly, with its biggest decline against the euro as stress in European bond markets eased. In Australia, consumer sentiment slumped for a second straight month in October, as higher borrowing costs squeezed household finances and added to cost-of-living pressures. Markets now see a 75.7% chance that the central bank will leave rates unchanged in November, versus a 24.3% chance of another hike. Attention will also turn to the RBA’s meeting minutes next week for further policy signals.