From QT Halt to AUD Jolt — What’s Driving FX Now

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FX Rocket Profits
December 04, 2025

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Fed Policy Shift & AUD Volatility

Markets are digesting a pivotal policy turn. The Federal Reserve ended quantitative tightening (QT), a move that signals concern over liquidity and financial stability. Traders are weighing whether this marks a dovish tilt or simply a pause in balance sheet reduction.

Meanwhile, the Australian dollar slumped on a Q3 GDP miss, only to quickly recover as sentiment steadied. The volatility highlights how macro data shocks can trigger knee‑jerk reactions, but broader flows often dictate the lasting trend.

Global FX remained mixed, with the U.S. dollar firm and equities cautious. The theme? Policy pivots and data surprises keep traders alert — resilience lies in adapting quickly.

⚡Daily Forex & Financial Market Recap – December 2, 2025

  • Equities mixed; USD held firm.

  • Gold steady near $3,980; oil pressured below $58.

  • FX markets saw modest volatility.

🔥Explainer: Fed Ends QT

  • Fed halts balance sheet reduction.

  • Implications for liquidity, rates, and market sentiment.

  • Traders assess whether this signals policy easing.

📊Headline: AUD Slumps, Then Recovers

  • Australia’s Q3 GDP missed expectations.

  • AUD dropped sharply, then rebounded.

  • Highlights volatility around macro data releases.

This issue blends policy shifts with currency volatility. As the Fed ends QT and the AUD reacts to GDP data, traders are reminded that markets hinge not only on fundamentals but also on how quickly sentiment adjusts.

Happy Trading!

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