Australia's Currency Surge Amid China's Resilient Economy and Japan's Political Shake-Up

The Australian dollar strengthened due to optimism about China's resilient economy and potential stability in U.S.-China trade relations. Meanwhile, Japan's political scene shifted as the ruling Liberal Democratic Party allied with the Japan Innovation Party, setting up Sanae Takaichi as likely next prime minister, impacting financial markets.

The Australian dollar climbed as China's economy exhibited resilience against U.S. tariffs, with President Trump toning down trade rhetoric. China's Q3 growth hit 1.1%, exceeding expectations, calming market nerves and supporting Australia's currency by 0.3% to $0.6504.

Political shifts in Japan saw Sanae Takaichi, a fiscal stimulus advocate, nearing prime ministerial confirmation after aligning with the Japan Innovation Party. However, BOJ's Hajime Takata's interest rate hike remarks erased initial market optimism.

Takaichi faced challenges after a coalition split, but her partnership with JIP provides a strategic advantage. Markets remain cautious, awaiting de-escalation in U.S.-China trade tensions, while Japan's Nikkei index surged over 3% amid speculations of BOJ policy changes.

(With inputs from agencies.)