Asian Currencies Mixed Ahead of FOMC Decision — Market Talk

The South Korean won fell to around 1,436 per dollar on Tuesday, reversing gains from the previous session as traders turned cautious before US President Donald Trump’s meetings with Asian leaders this week.

In Tokyo, Trump and Japan’s Prime Minister Sanae Takaichi signed a framework deal to strengthen cooperation on rare-earth and critical-mineral supply chains.

Markets also looked ahead to Trump’s talks with Chinese President Xi Jinping at the APEC summit later this week for signals on potential tariff and export-control adjustments that could shape regional trade sentiment.

Meanwhile, the greenback softened but offered limited relief for the won amid continued caution before the Federal Reserve’s policy decision.

Additionally, advanced estimates showed South Korea’s economy grew 1.2% in the third quarter, providing modest reassurance about growth momentum.

The Australian dollar rose to around $0.656 on Tuesday, reaching its highest level in nearly three weeks as a softer US dollar provided support.

The greenback weakened ahead of Wednesday’s Fed meeting, with markets pricing in a 25 bps rate cut, while optimism over a potential US-China trade deal also weighed on safe-haven demand.

In Australia, attention now turns to Wednesday’s release of Q3 inflation data and the September monthly CPI report, which could offer further insight into the trajectory of interest rates.

Market expectations for a rate cut have dropped sharply, with only a 15% probability currently priced in, down significantly from 60% after RBA Governor Michele Bullock reiterated that the labor market remains “a little tight,” despite unemployment rising more than the RBA had projected.

There is arguably just one to take note of on the day, as highlighted in bold below.

That being for AUD/USD at the 0.6490 level. Amid a better risk mood, the aussie has opened with a gap higher today against the dollar with price holding above the 0.6500 mark. The key hourly moving averages near the figure level will offer a modest floor in the session ahead but unless the risk mood sours, we might not see much conviction to visit that. As such, the expiries above may not factor much into play before rolling off.

For more information on how to use this data, you may refer to this post here.

Head on over to investingLive (formerly ForexLive) to get in on the know! This article was written by Justin Low at investinglive.com.

The South Korean won strengthened to around 1,430 per dollar on Monday, rebounding from an over six-month low in the previous session, supported by a softer dollar and expectations surrounding major policy and trade developments.

The greenback eased as investors positioned ahead of the Federal Reserve’s policy meeting this week, with markets widely expecting a rate cut amid signs of cooling inflation and slower growth in the US. Additionally, sentiment in Korea improved as the country prepares to host the APEC summit in Gyeongju, where President Lee Jae Myung is set to meet US President Donald Trump and Chinese President Xi Jinping.

Markets are watching for possible updates on trade and tariff discussions between Seoul and Washington, as well as broader commitments on supply chain and semiconductor cooperation that could support Korea’s export outlook.

The Australian dollar rose to around $0.653 on Monday, buoyed by optimism over progress toward a US–China trade agreement.

The world’s two largest economies have reportedly reached a preliminary accord on key issues, including export controls, fentanyl regulation, and shipping levies, paving the way for Presidents Donald Trump and Xi Jinping to potentially formalize a deal later this week.

This much-anticipated meeting could reduce the risk of a full-scale global trade war, which has threatened industries worldwide.

Last week, the US and Australia also finalized a critical minerals partnership, with Presidents Trump and Albanese framing it as a strategic step to curb American reliance on China.

Domestically, investors are turning their attention to the upcoming Q3 inflation figures and the September Monthly CPI report, which are expected to provide crucial insights into the Reserve Bank of Australia’s forthcoming policy direction.

The South Korean won rose to around 1,435 per dollar on Friday, strengthening slightly after the finance ministry said it was prepared to take measures to stabilize markets.

The statement came after Finance Minister Koo Yun-cheol met with Bank of Korea Governor Rhee Chang Yong and financial regulators, following the won’s slide to a six-month low earlier in the week.

Meanwhile, investors continued to monitor progress in high-stakes trade talks with the US ahead of next week’s APEC summit in Gyeongju, where Presidents Lee Jae Myung and Donald Trump are expected to discuss the USD 350 billion investment pledge.

The greenback, however, remained broadly supported amid expectations of a Federal Reserve rate cut next week and lingering uncertainty surrounding the US government shutdown.