• AUD/USD surges higher amidst positive Australian economic data.
• Monetary policy divergence continues to favor the Aussie.
• Focus shifts to US PCE data, which may influence market expectations for Fed rate cuts in November.

The AUD/USD pair surged higher on Thursday, rising by 0.90% to 0.6890. The Australian Dollar strengthened after the release of positive economic data and the hawkish stance of the Reserve Bank of Australia (RBA) this week. Meanwhile, the US Dollar weakened as markets are hopping for a larger cut by the Federal Reserve (Fed) in November.

Amidst a multifaceted economic landscape in Australia, the Reserve Bank of Australia's (RBA) assertive stance on inflation has led markets to anticipate a modest reduction in interest rates by only 0.25% in 2024.