The Australian dollar rose to around $0.653 on Monday, buoyed by optimism over progress toward a US–China trade agreement. The world’s two largest economies have reportedly reached a preliminary accord on key issues, including export controls, fentanyl regulation, and shipping levies, paving the way for Presidents Donald Trump and Xi Jinping to potentially formalize a deal later this week. This much-anticipated meeting could reduce the risk of a full-scale global trade war, which has threatened industries worldwide. Last week, the US and Australia also finalized a critical minerals partnership, with Presidents Trump and Albanese framing it as a strategic step to curb American reliance on China. Domestically, investors are turning their attention to the upcoming Q3 inflation figures and the September Monthly CPI report, which are expected to provide crucial insights into the Reserve Bank of Australia’s forthcoming policy direction.
