The Australian dollar rose in Asian trade on Thursday against a basket of major rivals, resuming gains against the US counterpart and approaching five-month highs once more after US President Donald Trump announced a big upcoming trade deal later today.

Recent Sydney data showed persistent inflationary pressures on Australian policymakers, hurting the odds of an Australian rate cut in May.

The Price

The AUD/USD pair rose 0.6% today to 0.6465, with a session-low at 0.6424.

The Aussie lost 1.1% against the US dollar on Wednesday, the first loss in four days on profit-taking away from a five-month high at 65.15.

Trumps Trade Deal

US President Donald Trump said hell announce a big trade deal with a highly respectable country in a new conference later today, the first of many such deals.

Its likely to be a trade deal with the UK, which itself reached a free trade deal with India last week.

Australian Rates

The odds of a 0.25% interest rate cut by the Reserve Bank of Australia stood at 85% in May.

The RBA held interest rates steady at 4.1% in April but opened the door for a cut in May.

Now investors await Australian inflation, unemployment, and wages data to gather more clues this month.

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