The market reduces bets on the Australian Central Bank's November rate cut

News on August 29, despite hints from the Governor of the Reserve Bank of Australia, Philip Lowe, that there would be no imminent rate cuts, the currency market has been betting on a rate cut by the Australian central bank. However, data released this week showed that Australia's inflation rate in July was slightly higher than economists' expectations, causing bets on interest rate cuts to start fading. The market has now reduced the possibility of an RBA rate cut in November from 56% before the data release to 42%. Nevertheless, markets still predict an 88% chance for a December RBA rate cut because according to current market pricing, by then US Federal Reserve may have already made two cuts.