The Australian Dollar struggles to gain momentum as markets fully anticipate an 80% chance of a November RBA rate hike, capping potential gains for the currency.
TD Securities notes that an 80% chance of a November RBA hike is already priced in, limiting further support for the Australian Dollar.
The Australian Dollar faces constrained growth potential as investors have already priced in an 80% probability of a rate hike by the Reserve Bank of Australia in November. TD Securities strategist Howard Du suggests that current market expectations leave little room for further currency appreciation based on monetary policy shifts.
The market has already priced in an 80% probability of a November RBA rate hike, meaning the expected policy action is already reflected in the current exchange rate.