The TD-MI Inflation Gauge in Australia increased from 3% to 3.1% year-on-year in October. This indicates a slight rise in inflationary pressures, which may impact monetary policy and the overall economic landscape.
The EUR/USD currency pair has recently experienced losses, settling around 1.1550, as expectations for a US Federal Reserve rate cut decline. Meanwhile, the GBP/USD pair is near its lowest point since April, signalling a bearish trend.
Gold Prices Affected by US-China Relations
Gold prices have fallen to around $3,950 due to the Fed’s hawkish stance and optimism about US-China trade relations. Market participants are awaiting US economic data, including the ISM Manufacturing Purchasing Managers’ Index.
Analysts are considering possible changes in risk sentiment and economic outlooks as central banks get ready for upcoming meetings. Bitcoin’s whitepaper celebrated its 17th anniversary, marking its journey from a niche idea to a financial asset.
As these developments unfold, being informed about central bank policies and economic indicators remains important for traders and other financial participants.
We are seeing the Australian inflation gauge from last week in October 2025 show a small rise to 3.1%. After the Reserve Bank of Australia worked through 2024 to get inflation under control, this uptick makes near-term interest rate cuts less likely. Traders might consider positions that benefit from the Australian dollar holding its value, as higher rates for longer tend to support a currency.
Impact of Federal Reserve’s Firm Interest Rate Policies
The US Federal Reserve continues to signal it will keep interest rates firm, a policy direction we’ve seen since the high inflation period of 2023-2024. This is putting pressure on other currencies, with the Euro now trading around 1.1550 and the British Pound near its lowest levels since April 2025. Options strategies that profit from further declines in the EUR/USD and GBP/USD pairs could be relevant in the coming weeks.
Gold has fallen to about $3,950, pulling back from the record highs we saw earlier this year. This is a direct response to high US interest rates, which make a non-yielding asset like gold less attractive to hold. For those who believe the Fed will not change its policy soon, derivative positions that bet on gold prices falling further might be considered.
All eyes are now on the upcoming US ISM Manufacturing report, as industrial data has been a key indicator of economic health. A number stronger than expected would support the Fed’s current stance, likely pushing stock index futures down and the dollar up. Traders could use options on indexes like the S&P 500 to protect against or profit from the volatility this news will create.