Asian session review: the US dollar is showing negative dynamics

During today's Asian trading, the US dollar fell moderately against major currencies, continuing yesterday's decline and returning to a 14-month low set last Wednesday.

The US Dollar Currency Index (DXY), which tracks the dynamics of the dollar against six currencies (euro, swiss franc, yen, canadian dollar, pound sterling and swedish krona) fell by 0.13% to 100.34. Yesterday, the index fell by 0.69%, which was caused by aggressive Chinese stimulus measures, expectations of further easing of the Fed's monetary policy and US data, which showed that consumer confidence fell sharply in September amid growing concerns about the state of the labor market. According to the CME FedWatch Tool, markets see a 56.7% probability of a 0.50% rate cut at the November meeting and a 48,5% probability of a 0.25% rate cut in December, with a 0.75% rate cut expected by the end of the year. Today, investors will continue to analyze US economic data (at 14:00 GMT, the new home sales report for August will be released), and will also pay attention to the statements of Federal Reserve Governor Adriana Kugler.

The Australian dollar fell 0.25% against the US dollar on the back of weaker-than-expected Australian inflation data. The Australian Bureau of Statistics said that the consumer price index (CPI) rose 2.7% annually in August, down from 3.5% in July. Economists had expected an increase of 2.8%. Electricity prices plunged nearly 15% m/m, while petrol prices decreased by 3.1% m/m. The RBA has held the cash rate steady at 4.35% since November, aiming to bring inflation within its 2-3% target while maintaining employment gains. However, core inflation remains elevated, with the trimmed mean rising 3.4% annually after increasing 3.8% annually in July - still above the RBA's target range. Services inflation, a significant contributor, grew by 4.2% annually in August, slowing slightly compared to July (4.4% annually).