Australia’s participation rate in September reached 67%, exceeding expectations of 66.8%. The Australian dollar is facing challenges due to rising expectations for a rate cut by the Reserve Bank of Australia, prompted by weaker job data.

Currency Movements

In currency movements, the USD/CAD is holding below 1.4050 amid ongoing US-China trade tensions. The US Dollar Index has fallen to its lowest point in over a week, struggling below the mid-98.00s. The Japanese yen has gained strength as demand for safe-haven assets rises. Meanwhile, the NZD/USD has climbed to about 0.5750, driven by worries over a long US government shutdown. Gold prices are hitting record highs, aiming for $4,250, as expectations for US rate cuts and trade tensions continue to support them. Some cryptocurrencies, like Aster, PancakeSwap, and Immutable, have seen losses due to a broader market sell-off. However, the Lido DAO has managed to recover, stabilizing above $1.00 after the launch of its Lido V3 testnet. Various brokers are spotlighted for their offerings in Forex, CFDs, leverage, regulations, and specific markets, catering to different trading needs for 2025.

US Government Shutdown

Please note, all markets and instruments discussed here are for informational purposes only and carry risks. The ongoing US government shutdown, now in its fourth week, is heavily impacting the US dollar. Markets are currently predicting an 85% chance of a Federal Reserve rate cut before the end of the year, pushing the DXY index to its lowest level since early 2024. Derivative traders might want to consider short positions on the dollar against a mix of major currencies. In this scenario, we observe significant movement towards safe-haven assets. Gold is steadily pushing towards $4,250, a price that seemed unlikely just a few years ago when it struggled to stay above $2,400. Options traders might consider buying call spreads on gold to benefit from this trend while managing costs. The Australian dollar offers a unique opportunity, as the market appears focused on older, weaker job data. The latest participation rate of 67.0% indicates strength in the labor market, contradicting expectations of a rate cut from the RBA. This mismatch suggests that AUD call options could be undervalued in light of the potential for a surprising hawkish move from the Reserve Bank of Australia. We are witnessing major pairs like EUR/USD and GBP/USD breaking through key technical levels due to dollar weakness. The euro is now targeting 1.1780, while the British pound has regained the 1.3400 mark after overcoming recent bearish pressure. Trading currency futures or CFDs to take advantage of this trend against the dollar remains a key strategy. Despite the weaker dollar, which usually supports commodity prices, WTI crude is struggling near $58 a barrel. This indicates significant concerns about global demand, likely resulting from the US shutdown and ongoing trade tensions. Traders may want to consider buying puts on oil futures as a hedge against a potential economic slowdown. Create your live VT Markets account and start trading now.

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