Ella 
The Australian dollar (AUD) edged lower against the U.S. dollar (USD) on Monday after two days of gains. AUD/USD came under downward pressure from lower-than-expected consumer price index (CPI) data for September from major trading partner China on Sunday.
The Australian dollar may have attracted sellers after a detailed report from the Commonwealth Bank suggested that the Reserve Bank of Australia (RBA) is expected to implement a 25 basis point interest rate cut by the end of 2024. The report suggested that a stronger deflationary trend than expected by the Reserve Bank of Australia would be critical for the board to consider easing policy this year.
The fall in AUD/USD may also be linked to a stronger greenback on expectations that the Federal Reserve (Fed) will slow down the pace of borrowing cost cuts more than previously expected. Markets are pricing in an 86.9% chance of a 25 basis point rate cut in November, with a 50 basis point cut unlikely, according to CME’s FedWatch tool.
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