In recent times, the exchange rate of the Australian dollar against the Chinese yuan has been on a downward trend. Especially since the beginning of the month, the exchange rate of the Australian dollar against the Chinese yuan has continued to fall. On the 1st, the exchange rate of the Australian dollar against the Chinese yuan was reported at 4.6550, down 100 points.

The exchange rate of the Australian dollar against the Chinese yuan continues to decline, directly related to the tense situation in the Middle East. The intensification of war conflicts has the most direct impact on the rise in oil prices, thereby affecting the global economic situation. Affected by localized wars, Australia's inflation rate is also likely to be affected. According to the latest forecast from the International Monetary Fund, due to price fluctuations caused by war conflicts, Australia's expected reduction in inflation rate to .% is no longer achievable. The war could even lead to a rebound in inflation rates.

Meanwhile, the Australian dollar continued its decline against the US dollar on a daily basis, hitting a low of . before trading around . The Australian dollar fell .% against the US dollar on a weekly basis, having dropped about % since hitting a recent high of . US dollars at the end of last month. The continuous decline of the Australian dollar is partly due to recent positive economic data in the United States, which has led to expectations of a more cautious stance by the Federal Reserve in November and pushed up US Treasury yields. As a result, the US dollar has risen for the fourth consecutive week. At the same time, bets on Trump's victory are still increasing, which also curbs expectations of significant rate cuts.

On the other hand, the upcoming release of Australia's third-quarter inflation data has become a focal point, with expectations that the overall inflation rate will return to the target range, while underlying inflation remains sticky. The next Reserve Bank of Australia (RBA) interest rate decision will be held on the [date]. The RBA has indicated that the current cash rate of 4.1% is sufficient to keep inflation within the target range of 2-3% while also supporting employment. Therefore, the RBA is unlikely to consider a rate cut as early as [month].

Foreign exchange analysts say that technical analysis on the daily chart shows a bearish short-term outlook for the Australian dollar against the US dollar. The currency is trending lower within a descending channel pattern, and the relative strength index is approaching, reinforcing the bearish sentiment. Wang Gang from the Guangdong Branch of the Bank of China stated that the exchange rate of the Australian dollar against the US dollar is precarious near the moving average. If it breaks below, the target will point towards the psychological level.