Aussie Loses Its Shine as Capital Flows Turn Against It. Forecast as of 08.10.2026

At first glance, the yuan's appreciation and the S&P 500's rally to record highs should have supported the AUD/USD pair. However, gains in the technology sector have encouraged capital repatriation, while the renminbi's apparent strength may be masking underlying weakness. Let's examine these trends and develop a trading plan.Major Takeaways The odds of an RBA rate hike are falling. The yield spread is favoring the US dollar. China is going against the global trend. Short positions on the AU