The Australian dollar strengthened after the RBA meeting

On Tuesday, the Australian currency showed growth: the AUD/USD pair rose by 0.4%, reaching 0.6610. The reason was the decision of the Reserve Bank of Australia to keep the key rate at 3.60%. The regulator noted that it prefers to wait for additional signals on inflation and the labor market before taking new measures.

This was the first pause after three consecutive rate cuts in 2025, reflecting the RBA's desire to maintain a balance between the risk of increased inflation and signs of a slowdown in economic activity.

Meanwhile, the Japanese yen strengthened: The USD/JPY exchange rate decreased by 0.5% to 147.92. The weak macroeconomic indicators of Japan exerted pressure on the dollar. Industrial production in August decreased by 1.2% compared to July, marking the second consecutive decline. Additionally, retail sales data showed the largest drop in the last four years, indicating weakness in domestic demand.

The EUR/USD exchange rate rose 0.2% to 1.1747 after the publication of preliminary data showing an acceleration in inflation in four key German states in September. These indicators indicate the likelihood of an increase in national inflation, which increases expectations before the publication of general data for the country. Economists forecast an increase in the harmonized consumer price index to 2.2% from 2.1% a month earlier.

The pound also showed growth: the GBP/USD pair added 0.1% to 1.3345 after the revision of statistics on British GDP. The UK economy expanded by 0.3% in the second quarter, with annual growth of 1.4% instead of the previously estimated 1.2%.