Aussie boosted ahead of APEC meeting
The Australian dollar pushed higher in line with gains across markets on growing hopes for a US-China trade deal this week.
US President Donald Trump and Chinese President Xi Jinping are expected to meet on the sidelines of this week’s APEC summit.
Both President Trump and Treasury Secretary Scott Bessent have painted an optimistic picture of the talks, with Bessent saying 100% tariffs are “off the table” and preliminary consensus to delay rare-earth bans and Chinese commitment to buy US soybeans.
Xi and Trump are also expected to discuss a “global peace” plan.
US shares were higher with the S&P 500 up 1.2% and the tech-focused Nasdaq up 1.9%.
The AUD/USD gained 0.7% as it reached the highest level since 8 October.
The NZD/USD gained 0.3% with the pair also at three-week highs.
USD/JPY at two-week high on service prices
Japan’s service inflation picked up pace in September, with corporate services prices rising 3.0% from a year earlier—beating forecasts of 2.8% and accelerating from 2.7% in August. Labor shortages in hotels and construction continue to drive the surge.
Markets expect the central bank to hold rates steady at 0.5% this Thursday, despite speculation around small future hikes. The recent appointment of pro-stimulus leader Sanae Takaichi as prime minister adds to the dovish tone.
The dollar is flexing against the yen, hitting a two-week high.
USD/JPY is eyeing the upper edge of its Bollinger band.
The next key support lies at 21-day EMA of 151.03 followed by 50-day EMA of 149.58, where USD buyers may look to take advantage.
China’s factory profits roar back
China’s industrial profits surged 21.6% in September—the biggest jump since late 2023 and a step up from August’s 20.4% gain. Government efforts to curb price wars helped large firms lift profits to 3.2% for the year so far, up from just 0.9%.
High-tech manufacturers led the charge, with earnings soaring 26.8%.
The yuan is gaining ground. USD/CNH has dropped to its lowest level in over a month.
The pair now faces key resistance at the 21-day EMA of 7.1294, followed by the 50-day EMA of 7.1387.
USD buyers may look to take advantage once RSI signals oversold conditions.
Aussie extends gains
Table: seven-day rolling currency trends and trading ranges
Key global risk events
Calendar: 27 – 31 October
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*The FX rates published are provided by Convera’s Market Insights team for research purposes only. The rates have a unique source and may not align to any live exchange rates quoted on other sites. They are not an indication of actual buy/sell rates, or a financial offer.
