Australia’s Commodity Futures Trading Commission (CFTC) reports that net positions for the Australian dollar have dropped to $-739K from $-65.8K. This change shows that traders in Australian dollar futures are adjusting their positions. Currency and commodity markets around the world are influenced by various factors. For example, the Euro is fluctuating due to US inflation and the European Central Bank’s policies. Meanwhile, the Canadian dollar has surged following a strong labor report.

Gold And Cryptocurrency Price Movements

Gold prices have been unstable, reaching $4,200 per troy ounce before slightly pulling back due to changes in the US dollar. In cryptocurrency, Bitcoin remains above $91,000 and Ethereum stays over $3,100 as markets await Federal Reserve decisions. Upcoming events include meetings from the Federal Reserve and other central banks, including the Reserve Bank of Australia and the Swiss National Bank. Traders are looking for possible interest rate cuts and other monetary policy updates. Ripple is facing downward pressure, trading around $2.06, even with continued investments in exchange-traded funds focused on the token. Additionally, insights into broker performance for 2025 suggest exploring various trading options. Large traders are increasingly betting against the Australian dollar, with net short positions rising dramatically to nearly $740K from last week. This is a strong bearish signal to consider before the Reserve Bank of Australia’s meeting. Australian Economic Data The negative outlook on the Australian dollar likely stems from recent economic data. Australian inflation is just above 4%, and November’s unemployment rate is at 3.9%. Traders expect a cautious statement from the RBA. The strong job report from Canada highlights our potential economic challenges. However, the key event affecting all markets is the Federal Reserve’s meeting on December 10th. An interest rate cut is widely expected, which may explain why gold remains steady at $4,200 and stocks are slightly rising. This expectation has been building for months, especially following the aggressive rate hikes in 2023. Market confidence is supported by easing US inflation. The latest core PCE inflation figure is at 3.0% year-over-year, giving the Fed a reason to start easing its monetary policy. This supports the belief that the high-interest rate era is finally changing. For derivative traders, this environment suggests that options strategies anticipating a decline in the US dollar could be profitable. Buying calls on sensitive assets, like gold or major stock indices, may allow traders to benefit from the rally expected after the Fed’s announcement. If the Fed acts as predicted, volatility is anticipated to remain low. The biggest risk is complacency; any surprises from the Fed could lead to market turmoil. If the Fed indicates fewer cuts than anticipated or keeps rates steady, we might see a sharp reversal. In such a case, the dollar could spike, and risk assets could decline sharply. As a hedge against this possibility, buying inexpensive out-of-the-money puts on major indices could be wise. Create your live VT Markets account and start trading now.

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The CFTC oil net positions in the United States rose significantly from 39.8K to 656K, showing a major shift in market sentiment during the reporting period. Other currencies and commodities are also moving noticeably. The EUR/USD is steady at 1.1650 due to US inflation and risks from the European Central Bank. At the same time, the Canadian Dollar is gaining strength after a good labor report. The Dow Jones Industrial Average is up as PCE inflation slows, increasing hopes for a rate cut. Gold remains robust at $4,200, driven by expectations of a Federal cut. In currency trading, the AUD/USD is approaching its year-to-date high after breaking out of its trading range, while gold has dipped as the Dollar gains strength. Bitcoin, Ethereum, and XRP are seeing corrections, even with hopes for a future Fed rate cut. FXStreet offers recommendations for Forex brokers in 2025, highlighting the top brokers for trading different currencies and commodities. They emphasize the need to do thorough research before making any investments, given the risks in financial markets. This content is for informational use and not investment advice. The recent surge in oil positions shows that speculative traders are very optimistic about crude prices. This is a strong sign, as net long positions have hit a multi-year high, indicating a belief that demand will exceed supply. We should consider purchasing call options on WTI or Brent futures to take advantage of this momentum. With the Core PCE inflation for November 2025 at a manageable 2.1%, the market has fully accounted for a Federal Reserve rate cut. We remember the aggressive rate hikes of 2022-2023, and this expected change is driving risk assets higher. The main risk now is if the Fed unexpectedly decides to keep rates steady, which makes strategies that benefit from sudden market volatility, like VIX straddles, a smart hedge. Gold’s strength at $4,200 an ounce is due to expectations of a weaker dollar and lower real yields following the Fed’s actions. Central banks have been buying gold significantly, creating a solid price floor since their record purchases in 2023, with reports showing an additional 55 tonnes added to global reserves last quarter. This trend suggests that long positions in gold futures or ETFs are worth considering. The US dollar is facing pressure, particularly against commodity-linked currencies. Canada’s recent labor report was outstanding, adding 85,000 jobs compared to the expected 15,000, while the Australian dollar benefits from strong commodity prices. A good strategy is to invest long in the Aussie and Canadian dollars against the US dollar. Equity markets are rising as many believe we are achieving a soft landing and that lower interest rates will boost corporate earnings. The Dow’s rise reflects this optimism, which contrasts sharply with the recession fears from early 2024. It’s advisable to maintain long positions in stock indices while considering protective put options to guard against any unexpected hawkish moves by the Fed.

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The CFTC data on Eurozone positions shows a decrease, with current numbers at €1073K, down from €111.8K. This change highlights shifts in the market and the Eurozone economy. Major currencies are experiencing ups and downs. The EUR/USD pair fell to a daily low of 1.1630, partly due to some strength in the US Dollar. Similarly, the GBP/USD pair declined to about 1.3320 after US consumer sentiment data exceeded expectations.

Gold Prices Reversal

Gold prices have dropped back to around $4,200 as the Dollar gains strength and US Treasury yields rise. Despite this dip, gold still looks promising because of expectations for more monetary easing from the Fed. In cryptocurrency, Bitcoin remains steady above $91,000, while Ethereum is above $3,100, indicating confidence in the market before the Federal Reserve’s upcoming meeting. However, Ripple is under pressure, trading at $2.06, even with stable inflows into its ETFs. The Fed’s upcoming meeting is expected to consider a rate cut, and market watchers are keeping an eye on central banks like the RBA, BoC, and SNB. Many are focused on the Federal Reserve’s meeting on December 10, where a rate cut is already priced into the market. This expectation is driving recent moves across different asset classes. Traders should prepare for volatility during this event, especially if the Fed’s comments differ from the expected dovish stance.

Euro Positioning Shift

There has been a significant change in Euro positioning, with net long contracts for non-commercial traders jumping to over €1 million. This suggests that large traders are betting heavily on Euro strength against the Dollar. Given this momentum, buying call options on EUR/USD or selling puts can align well with this trend, especially as the pair stabilizes around 1.1650. The recent inflation data for Eurozone’s HICP in November showed a slight increase at 2.8%, contrasting with the cooling PCE data from the US. This difference strengthens the case for a stronger Euro, as the European Central Bank is likely to remain firm while the Fed eases. We haven’t seen the EUR/USD stabilize this strongly at the 1.16 level since the recovery period of late 2021. Gold remaining firm at $4,200 per ounce shows a strong belief in a dovish Fed and ongoing weakness in the US Dollar. This price level represents nearly a 70% rise from previous all-time highs in 2024. Traders might consider buying call options on gold futures or gold ETFs to benefit from potential increases driven by expected monetary easing. The crypto market, with Bitcoin steady above $91,000, is also reacting to the expectations of looser financial conditions. Last week, digital asset investment products attracted over $2 billion in inflows, indicating that institutional capital is returning. This sets up crypto derivatives, especially long positions on Bitcoin and Ethereum futures, as a high-risk play on the “Fed pivot” story. Create your live VT Markets account and start trading now.

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The S&P 500’s net positions reported by the Commodity Futures Trading Commission dropped from $-145.3K to $-1501K. This decline highlights a change in market sentiment during the assessed period. At the same time, the EUR/USD pair held steady at 1.1650, influenced by US inflation data and concerns from the European Central Bank. The Canadian dollar strengthened after a positive labor report, while the Dow Jones Industrial Average rose due to easing PCE inflation and growing expectations for interest rate cuts.

Gold And Asset Class Fluctuations

Gold stayed strong at $4,200 with expectations of Federal Reserve rate cuts. However, its value decreased from earlier highs as the dollar gained strength following stable US PCE data. Various asset classes, including major currencies and indices, are experiencing fluctuations that reflect the current economic situation. FXStreet aims to provide information with forward-looking statements that carry risks and uncertainties. While efforts are made to ensure accuracy, readers should conduct their own research before making investment decisions. FXStreet takes no responsibility for errors and stresses that investing involves significant risks. We’ve observed a significant shift in S&P 500 speculative positioning, with net short contracts rising over tenfold to -1.5 million. This indicates that large traders are making strong bets that the stock market may decline. The magnitude of this change suggests a high level of conviction among hedge funds and other speculators. Despite the growing bearish sentiment, the market is optimistic about cooling inflation and potential Federal Reserve rate cuts. The November 2025 Core PCE inflation figure came in at 2.1%, slightly above the Fed’s target, prompting the S&P 500 to surge to new highs near 6,200. The contrast between the positive economic news and heavy short-selling indicates that traders believe the good news is already accounted for, making the market feel overextended.

Defensive Strategies In A Bearish Market

For derivative traders, this signals a need to consider defensive positions. One strategy could be purchasing put options on the SPX or SPY ETFs to guard against a possible market correction in the coming weeks. The CBOE Volatility Index (VIX) has risen from 14 to 16, suggesting that the cost of this protective measure is increasing, so prompt action may be wise. It’s important to remember that a crowded short trade can trigger a significant rally if the market turns. We saw this in the 2023 market recovery, where overwhelming bearish sentiment resulted in a powerful short squeeze once the sentiment shifted. A sudden positive development could force short positions to cover, driving market prices even higher. In the upcoming weeks, we can use options to navigate this tension. Buying calendar spreads with a bearish bias or purchasing out-of-the-money puts for January 2026 can be a cost-effective way to prepare for a downturn. This approach allows participation in a potential decline while limiting risk if the market continues to rise through the year-end. Create your live VT Markets account and start trading now.

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The Canadian Dollar (CAD) rose by almost 0.9% on Friday, marking its second week of gains. Since hitting lows in early November, the CAD has gained nearly 2.2% against the US Dollar (USD). November’s Canadian labor statistics showed better-than-expected job growth. The unemployment rate fell to its lowest point since August 2024, with 53.6K new jobs added, exceeding the expected 5K decline.

Impacts of US Inflation Data

US inflation data for September showed slight improvement, increasing market optimism and strengthening expectations for a third Federal Reserve rate cut in December. The USD weakened broadly, benefiting the CAD, which reached ten-week highs against the USD. The USD/CAD pair has entered bearish territory, with prices now below the 200-day Exponential Moving Average (EMA). Despite technical indicators suggesting oversold conditions, a return to the 1.4000 level is unlikely without a shift in market sentiment. Factors affecting the CAD include Bank of Canada interest rates, oil prices, the country’s economic health, inflation, and trade balance. Canada’s economy is also influenced by the health of the US economy, its main trading partner. With the strong jobs report from November 2025, the CAD appears to have a solid advantage over the USD. The unemployment rate dropped to 6.5%, reversing earlier rising joblessness trends and easing pressure on the Bank of Canada to lower interest rates. This difference in economic strength is crucial for traders to monitor.

Focus on the Federal Reserve’s Next Meeting

The market is closely watching the US Federal Reserve’s meeting set for December 10. With expectations for a third interest rate cut firmly in place, the USD is likely to remain under pressure. This follows the Fed’s shift away from its aggressive rate-hiking policy used until mid-2024. For derivative traders, this may indicate a strategy to position for further declines in the USD/CAD pair. Buying puts on USD/CAD or setting up bearish call spreads could be effective strategies to take advantage of this trend. These approaches would benefit if the pair continues to decline, especially if the Fed hints at more easing. The outlook for a stronger CAD is also supported by stable commodity markets, with Brent crude oil hovering above $85 a barrel. Historically, stable or rising oil prices provide a boost for the Canadian economy and its currency. We’ve observed this trend during past commodity cycles, including the recovery in 2021. However, caution is needed as the USD/CAD pair approaches technically oversold levels. Although the trend is down, a “sell the rumor, buy the fact” response to the Fed’s announcement could trigger a short-term rebound. If the pair fails to break back above the key 1.4000 level, this should be seen as an opportunity to reinforce bearish positions. Create your live VT Markets account and start trading now.

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The Dow Jones Industrial Average gained 150 points on Friday, closing the week near 48,000. This rise was supported by September’s US Personal Consumption Expenditures Price Index data, which strengthened market confidence in a likely Federal Reserve interest rate cut on December 10. The Standard & Poor’s 500 rose by 0.3% on Friday, positioning it to reach all-time highs soon. Core PCE inflation held steady at 2.8% year-over-year in September, unchanged from August, despite delays caused by the longest US government shutdown. The University of Michigan’s Consumer Sentiment and Expectations Indexes for December exceeded expectations, while one-year and five-year Consumer Inflation Expectations from UoM dropped slightly. Market momentum might slow down before the Federal Reserve’s rate decision on Wednesday. December’s meeting will also update the Summary of Economic Projections, which outlines interest rate expectations from the Fed policymakers. The Core PCE measures monthly price changes in US goods and services and is the Fed’s favored inflation indicator. A high Core PCE reading typically strengthens the US Dollar, while a low reading has the opposite effect. With the Dow Jones nearing 48,000, markets are anticipating a likely interest rate cut from the Federal Reserve on December 10. This would mark the third consecutive cut, a significant shift in policy that started earlier this year due to a slowing economy. The market’s positive trajectory relies heavily on the expectation of cheaper money. Despite the September PCE inflation data being old, it shows a core rate of 2.8%, which is viewed positively. This is largely due to the major government shutdown this autumn. More crucially, the November Consumer Price Index report released last week confirmed a cooling trend, with core inflation falling to 3.1%. This gives the Fed a solid reason to proceed with another cut next week. December’s consumer sentiment numbers were strong, while inflation expectations dipped, creating a “soft landing” outlook that is boosting the market. Currently, the CBOE Volatility Index (VIX) is low at 13, indicating that investors are not overly worried as they approach the Fed meeting. Since over 90% chance of a rate cut is already factored in, according to the CME FedWatch Tool, the actual announcement may not lead to significant movement in the market. Instead, the focus should be on the Fed’s updated dot plot and economic forecasts. We should be ready for a “sell the news” reaction if the Fed’s guidance for 2026 isn’t as favorable as the market hopes. With low implied volatility, buying options is relatively inexpensive right now. Traders might want to consider purchasing call options on the S&P 500 to take advantage of positive momentum through the year’s end, especially if the Fed’s message is encouraging. A dovish stance from the Fed could push the index beyond its all-time highs. However, we should also prepare for a hawkish surprise in the forward guidance. If the dot plot suggests fewer rate cuts next year, this rally could reverse quickly. Buying some inexpensive, out-of-the-money put options on major indices could offer an affordable way to protect against a sudden downturn. We faced a similar situation in late 2023 when markets surged on the promise of a Fed pivot, only to deal with volatility as the timing was delayed. This experience shows that the Fed’s future plans are often more significant than the immediate rate decision. The market’s reaction on December 10 will largely depend on the wording in the statement and the new projections. This anticipated rate cut is also putting pressure on the US Dollar, favoring assets priced in the currency. With Gold nearing $4,200 an ounce, a confirmed dovish stance from the Fed could drive it even higher. Trading gold-backed ETFs with options is a direct method to capitalize on this potential outcome.

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The SP500 (SPX) is likely to keep climbing towards 7120, following an Elliott Wave pattern. A small 4th wave correction just finished, keeping the index above important support levels, currently 125 points higher (1.8%). In a classic impulse pattern: – The third wave typically extends to 161.8% – The fourth wave reaches 100.0% – The fifth wave can extend to 200.0% Recent data supports these predictions, showing the index at 6850, dipping to 6780, and rising to 6895, with a margin of error of +/- 0.03-0.3%.

Looking Ahead

Next, we expect a small pullback in the gray 4th wave to around 6785-6825 before the index rises to 6930-7010. Pullbacks during uptrends are usually shallow, which could drive higher fifth wave targets and get us closer to the 7120 goal. After that, a longer decline to about 5800 (+/-400) seems likely. Be cautious with short-term levels at 6827, 6800, 6738, 6660, and 6597. Breaking these levels reduces the chance of an uptrend by 20%. Dr. Arnout Ter Schure, with vast experience in the energy and environment fields, shares these observations. Since late November, the market’s strength suggests that the rally to 6895 is almost finished. We expect a minor pullback to the 6785-6825 area, which should be seen as a buying opportunity. The strong November jobs report, showing a steady unemployment rate of 3.8%, backs this positive short-term forecast. For derivative traders, the upcoming dip is a great chance to enter short-term call options or bull call spreads. The goal is to profit from the next rise towards the 6930-7010 range. A break below 6827 will be our first signal to reduce bullish exposure.

Long Standing Target

This next move is likely the final push toward our long-term target of 7120. As the index nears this level, the risk of a significant peak forming increases. We expect this to be the high point of the rally that started in April 2025. As we approach the 7120 target, we should shift our strategy to accumulating longer-dated put options, targeting March or June 2026 expirations. This prepares us for a potential long correction down to the 5800 area. Recent inflation data, which has risen back to 3.5% annually, supports the idea of an upcoming market-cooling event. Currently, the market shows signs of complacency, with the Volatility Index (VIX) dropping to 14. However, we expect this won’t last. This trend mirrors past major peaks, like late 2007, when low volatility preceded a sharp reversal. Be ready for significant volatility once we test the 7120 region. Create your live VT Markets account and start trading now.

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Consumer credit in the United States rose by $9.18 billion in October, missing the expected increase of $10.5 billion. This suggests that consumers are being more cautious when it comes to borrowing.

Currency Movements

The EUR/USD exchange rate stayed around 1.1650, influenced by US inflation and factors from the European Central Bank (ECB). The Canadian dollar gained strength after a positive labor report, while the Dow Jones Industrial Average rose as inflation slowed, increasing hopes for a rate cut. Gold started strong at $4,200 but later dipped as the dollar gained strength following stable PCE data. Expectations around Federal Reserve policy shifts are affecting market outlooks, including for cryptocurrencies like Bitcoin and Ethereum. Ripple is trading at $2.06 but continues to face challenges despite healthy inflows into XRP spot ETFs. In 2025, traders are encouraged to explore various brokers, paying attention to low spreads, leverage, and trading platforms to improve their trading strategies. The latest consumer credit report indicates a borrowing increase of $9.18 billion, which is below the expected $10.5 billion and suggests a cautious consumer base. This marks the third month in a row of slowing credit growth, a trend not seen since the economic instability of 2023. This decline strengthens the belief that the Federal Reserve may need to intervene to support the economy. With the Federal Reserve meeting set for December 10, market expectations are high, indicating more than a 90% chance of a 25-basis-point rate cut. This belief is further backed by recent data showing Core PCE inflation, the Fed’s preferred measure, has cooled to 2.4% year-over-year. The market is almost fully pricing in a rate cut, creating a tricky situation for the upcoming weeks.

Strategic Trading Considerations

Since gold has already risen to $4,200 an ounce in anticipation of the rate cut, holding long positions could be risky. We recommend that traders consider buying protective put options on gold mining ETFs to guard against a potential “sell the news” scenario or if the Fed adopts a more hawkish stance. This strategy offers defined risk if the market’s expectations do not materialize. The general consensus is that the US Dollar is weak, pushing currency pairs like EUR/USD to around 1.1650. However, this positioning leaves the dollar at risk of a sharp bounce if the Fed’s statement is less dovish than anticipated. We’re looking into buying inexpensive, short-term call options on the US Dollar Index (DXY) as a low-cost way to benefit from a possible reversal. Implied volatility for major stock indices has dropped significantly, with the VIX hovering around 13, showing market complacency ahead of the Fed’s decision. This low volatility results in cheaper option premiums. We see a chance to buy straddles on the S&P 500, allowing us to profit from a significant price movement in either direction following the announcement. Create your live VT Markets account and start trading now.

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**Gold Prices Stable** Gold prices are stable, ranging from $4,200 to $4,250, as we await a possible rate cut from the Federal Reserve next week. Currently, XAU/USD is trading at $4,216 after hitting a high of $4,259 earlier in the week. The Core PCE Price Index, the Fed’s key inflation measure, is mostly unchanged at around 3%. This, along with softer job data and prior statements from the Fed, suggests a potential rate cut is coming. A Reuters poll indicates that economists are largely expecting a rate cut in December, which might boost Gold prices. The CME’s FedWatch tool shows an 87.2% chance of a rate cut next week. The US Dollar Index remains steady, and the 10-year Treasury yield has increased to 4.141%. In September, the Core PCE, excluding food and energy, rose by 0.2%, leading to a yearly core PCE of 2.8%. In technical terms, Gold might stay in the $4,200-$4,250 range ahead of the Fed’s meeting. If it breaks out, prices could rise to $4,300. Conversely, a drop below $4,200 might find support from various moving averages. Central banks hold significant Gold reserves, and factors like geopolitical issues can influence prices. Since Gold is priced in dollars, changes in currency value also affect its price. **Federal Reserve Meeting Anticipation** Today, December 6th, 2025, Gold remains above the $4,200 level as we anticipate the important Federal Reserve meeting next week. With an 87.2% chance of a rate cut priced in, the momentum appears to be upward. This strong expectation provides a solid support level for current Gold prices, keeping significant sell-offs at bay. The Fed has room for this decision as inflation has been declining for months. Core PCE has dropped from 3.5% in spring 2025 to 2.8% now. This trend, along with a recent Non-Farm Payrolls report showing only 95,000 job gains, indicates a slowing economy that might allow for looser monetary policy. For derivative traders, this suggests preparing for a potential breakout with call options or bull call spreads. The options market is leaning bullish, with January 2026 call options at the $4,300 strike trading at a notable premium. A dovish signal from the Fed could push prices toward the all-time high of $4,381. However, we must remain wary of a “buy the rumor, sell the news” scenario, as the rate cut is widely anticipated. We recall the sharp $150 drop in summer 2024 when a expected cut did not materialize, so a hawkish surprise could be tough. Hedging long positions with puts below the $4,124 support level might be a wise choice. Support for Gold remains strong due to ongoing central bank purchases, a trend we have seen since major buying began in 2022. The latest World Gold Council data for Q3 2025 confirmed an additional 250 tonnes added to global official reserves. This ongoing demand provides a strong foundation for Gold’s long-term future. Technically, the price is tightly coiling in the $4,200-$4,250 range, building energy for its next movement. A clear break above daily highs of $4,259 would trigger a rally, while a surprising drop below $4,200 could target the 50-day moving average near $4,059. Create your live VT Markets account and start trading now.

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The Australian Dollar is gaining strength against the US Dollar, reaching the highest point since mid-September. This rise comes from the belief that the Reserve Bank of Australia (RBA) will keep interest rates steady. Currently, the AUD/USD is trading at around 0.6637, marking two weeks of growth in a row. The possibility of the RBA raising rates next year adds support to this trend, especially since the Federal Reserve is taking a softer approach. The technical chart shows a positive outlook, with the AUD/USD moving above important Simple Moving Averages. A strong support zone is established between 0.6550 and 0.6520, which could help prevent any sharp declines. The immediate resistance level is at 0.6650; breaking above this could push the currency pair toward a yearly high of 0.6707. Indicators like the RSI, which is near 68, and the ADX at 19 indicate a strengthening trend. Overall, both economic and technical factors favor the Australian Dollar right now. The RBA’s decision on interest rates, set for December 9, is an important economic event. The current and previous rates are both at 3.6%. The central bank meets eight times a year to review its monetary policy. The main factor in the market is the clear difference between the central banks. The Federal Reserve is indicating a softer stance, while the RBA is staying firm, which creates strong support for the AUD/USD. This policy split has driven the pair above the 0.6600 level recently. Confidence in the Australian Dollar comes from solid domestic data. For example, the unemployment rate fell to 3.7% in November, and inflation was still high at 3.8% in October. This suggests that the RBA will likely keep a firm stance on December 9, with potential rate hikes on the horizon for 2026. In contrast, the US Dollar’s weakness seems justified given the weakening economic signals. The latest Non-Farm Payrolls report from December 5 showed job growth slowing to just 120,000, and core PCE inflation decreased to 2.8%. These numbers support the expectation that the Fed will consider rate cuts for 2026 in their upcoming meeting. Given this outlook, we recommend strategies that could benefit from further increases in the AUD/USD into early next year. Buying call options with strike prices above the yearly high of 0.6707 could provide a leveraged way to ride the rally. Traders might also explore bull call spreads to reduce entry costs while limiting potential gains around the 0.6800 level. Expect implied volatility to rise as we approach the RBA and Fed meetings on December 9 and 10. While opinions are clear, any unexpectedly hawkish remarks from the Fed or dovish signals from the RBA could quickly change the current trend. It’s wise to use stop-losses or defined-risk options to manage this event risk. This situation reminds us of late 2023, when markets began pricing in Fed cuts while the RBA kept its rates steady. That period led to a sharp rally in the Australian Dollar. History shows that once these policy differences gain momentum, they tend to continue longer than many expect.

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