USD Strengthens as Fed Delivers 25bps Cut and Powell Cools December Hopes

Welcome to our daily market update. If you have any questions or would like anything further explained, please don’t hesitate to reach out to your account manager or email info@cafx.com

 

Forex Market 

USD: FOMC Cuts Rates by 25bps; USD Rallies on Powell’s Hawkish Tone

A divided FOMC (10-1-1 vote) delivered the expected 25bps rate cut overnight, though Governor Powell struck a more balanced tone on the prospect of a December cut than markets anticipated. Wall Street was mixed, with the Dow Jones -0.4%, S&P 500 -0.3%, and Nasdaq +0.3%.
U.S. 10-year yields rose 9bps to 4.07%, while Brent Crude climbed 0.8% to $64.90 per barrel. The USD strengthened following the announcement, with AUD/USD settling near the lower end of its 0.65585–0.6617 range.
  • Asian equities were mixed, led by the Nikkei (+2.2%), Shenzhen (+1.2%), and Hang Seng (-0.3%). The ASX 200 slipped 1.0% following firmer CPI data, with healthcare (-2.3%) and industrials (-2.0%) underperforming. AUD/USD remained elevated near 0.66, touching 0.6619 highs into the European morning.
  • European equities opened quietly — FTSE and Stoxx +0.5%, while DAX and CAC were mostly unchanged. EUR/USD and GBP/USD fell 20 pips each to 1.1619 and 1.3198, respectively, before steadying after UK mortgage approvals beat expectations (65.9k vs 64k). Gold rebounded +1.9% to trade above $4,000/oz.
  • Ahead of the NY open, focus shifted to the Bank of Canada, which cut rates by 25bps to 2.25%, in line with expectations. The accompanying statement was neutral, noting uncertainty around U.S. trade relations. USD/CAD dropped to 1.3915, later sliding to 1.39025.
  • In the U.S., September Pending Home Sales were flat MoM (vs +1.2% exp.), below prior +4.2%. Little reaction was seen, though GBP/USD edged lower to 1.3195 ahead of the FOMC.

Key Economic Data Ahead (Sydney Time)

General Market

Wall Street
• Dow Jones -0.1% to 47,666
• S&P 500 -0.4% to 6,862
• Nasdaq +0.4% to 23,916
• VIX +6.5% to 17.48

Asia-Pacific
• ASX -1.0% to 8,926
• Shanghai Comp +0.7% to 4,016
• Nikkei +2.2% to 51,308

Europe
• FTSE +0.6% to 9,756
• DAX -0.6% to 24,124
• CAC -0.2% to 8,201

Headlines to Watch 

United States
  • Stronger housing and manufacturing data offered support, but consumer confidence eased slightly in October.
  • Market focus now shifts to pending home sales and inventory figures for direction.
Europe
  • Germany: November GfK Consumer Confidence remains weak, signaling fragile household sentiment.
  • Eurozone: ECB’s Bank Lending Survey and 3Q Negotiated Wages data due later this week will provide insight into credit conditions and wage growth.
Global
  • Market sentiment stayed upbeat following another strong Wall St. session.
  • The USD remained mixed as traders await key inflation data and central bank commentary later in the week.

Mid-market rates

Currency PairMid-market Rate
AUD/USD0.6575
AUD/NZD1.1410
AUD/JPY100.44
AUD/CNY4.6654
AUD/EUR0.5667
AUD/GBP0.4983
AUD/HKD5.1096

 

 

 

Disclaimer:

The market update provided by Corporate Alliance FX (CAFX) is for reference only and does not constitute a bid, levy, offer or invitation to offer for the financial product, the basis for any contract or commitment, a recommendation for the purchase or sale of any investment instruments, financial, legal, tax, investment advice, investment advice or other opinions. It will not be legally liable for any consequences or losses caused by the information or content involved.
Corporate Alliance Group Pty Ltd T/A Corporate Alliance FX (CAFX) (ABN 58 167 119 226, AFSL 523351) (i.e. CAFX), CAFX independently holds the Australian Financial Services licence no. 523351 (AFSL), so CAFX is regulated by the Australian Securities and Investment Commission (ASIC) and, and although ASIC is a strictly regulatory body, it does not endorse a specific financial product. ASIC’s regulation of CAFX applies to all services under the financial licence held by CAFX, including the issuance of foreign exchange settlement, foreign exchange payments, foreign exchange risk control, hedging, market making and providing financial advice.3

Facebook
LinkedIn

Corporate Alliance Group Pty Ltd (ABN: 58 167 119 226) trading as Corporate Alliance FX (“CAFX”) holds an Australian Financial Services License (AFSL No: 523351) issued by the Australian Securities and Investments Commission, and is registered with the Australian Transaction Reports and Analysis Centre (AUSTRAC) as an independent remittance dealer (Registration No – IND100697688-001).

Corporate Alliance Payments Pty Ltd (ABN: 66 650 245 382) trading as CAPAY is an ASIC AR 001295931 of Corporate Alliance Group Pty Ltd (ABN 58 167 119 226), and is registered with the Australian Transaction Reports and Analysis Centre (AUSTRAC) as a remittance dealer (Registration No IND100792739-001), and a Remittance Network Provider (RNP) (Registration No. RNP100792739-001).

Corporate Alliance Pty Ltd (ABN: 51 644 169 148) trading as Corporate Alliance Finance (“CAFIN”) is an ASIC AR 001297733 of Corporate Alliance Group Pty Ltd (ABN 58 167 119 226), which holds an Australian Financial Services Licence issued by the Australian Securities and Investments Commission (AFSL No: 523351).

DISCLAIMER:  The information contained on this website and in any accompanying documents or communications is provided for general information purposes only. It is not intended as a solicitation for funds, nor should it be considered a recommendation or advice to trade.  The contents do not consider your personal objectives, financial situation, or individual needs. You should seek independent financial advice before making any investment or trading decisions.

Corporate Alliance Group, along with its associated or related entities, accepts no liability for any loss or damage—whether direct, indirect, consequential, or otherwise—arising from any action taken or not taken based on the information provided on or through this website.

©2025. Corporate Alliance Group. All Rights Reserved.

Security & Regulation
Legal & Compliance
Privacy Policy
Support SLA