Australia’s import price index dropped by 0.4% in the third quarter, which is steeper than the expected 0.1% decline. This indicates that import costs are lower than anticipated. In other market news, WTI held steady above $60.00 as updates on the US-China trade deal approached. The Bank of Japan decided to keep its interest rate at 0.5%. As a result, EUR/JPY rose above 177.50 after the BOJ’s announcement, while the Japanese Yen weakened.

The Forex Market

The forex market is experiencing some ups and downs. The EUR/USD fell below 1.1600 after the recent FOMC meeting, while GBP/USD climbed back above 1.3200 due to the weaker USD. Bitcoin also fell to $110,000 as the Fed took a cautious stance despite a rate cut. Looking forward, the European Central Bank is expected to keep its current policy in the next meeting. Meanwhile, Pi Network’s PI token is stable, trading just above $0.2600. This suggests potential growth as inflows into Centralised Exchanges increase. We also reviewed the best brokers to consider for 2025, with different options based on trading preferences like low spreads, high leverage, and specific currency pairs. These suggestions can help traders choose brokers suited to their strategies and locations. Australia’s import prices fell by 0.4% this quarter, a sharper drop than the 0.1% we expected. This implies that inflationary pressures from abroad are decreasing faster than we thought. Consequently, the Reserve Bank of Australia (RBA) might have more room to pause its interest rate policies or even think about lowering rates if this trend continues.

Reserve Bank Of Australia Monetary Policy

It’s important to note that this marks a significant shift from the aggressive rate hikes in 2023-2024, when the RBA raised the cash rate to 4.35% to control high inflation. As of October 30, 2025, today’s data shows that prior policy actions have effectively reduced price pressures. The focus now is on supporting the economy as it slows down. For traders, this reinforces a bearish outlook for the Australian dollar in the coming weeks. We suggest considering put options on AUD/USD or bear call spreads as strategies to prepare for a possible decline. These methods offer limited risk while enabling profit from potential downward movement if the RBA adopts a softer stance. This decrease in inflation may be connected to weaker global demand, especially from China, whose economy has shown mixed signals. Over the past 18 months, China’s official manufacturing PMI has struggled to consistently remain above the 50-point mark, which indicates growth. Since China is Australia’s largest trading partner, any slowdown there affects the demand for Australian exports and pressures the currency. The differing policies between the RBA and the Bank of Japan, which has kept its rate steady at 0.5%, make the AUD/JPY exchange particularly interesting. The RBA’s possible dovish approach contrasts with the BOJ’s steady strategy, providing a strong reason to short this pair. We will closely monitor the RBA’s next meeting for any hints that confirm this change, which could push AUD/JPY below the 100.00 level. Create your live VT Markets account and start trading now.

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