Markets have priced in 28 basis points of Fed rate increases for December after Fed Gov. Christopher Waller said a 50-basis-point move should be considered if October U.S. consumer-price inflation came in at around 0.3% or higher. It did.

“There no reasons to expect a bounce [in the Australian dollar] just at the moment,” said Ray Attrill, head of FX strategy at National Australia Bank. Waller, he added, “has form for speaking his own mind rather than reflecting what the rest of the Fed might think.” Attrill said there was a clear risk the Fed would have to do more next year.

At the same time, money markets are increasingly betting that the Reserve Bank of Australia may have finished raising rates after five increases this year. Weak housing data and a significant fall in both consumer and business confidence have led traders to largely rule out another RBA increase in December.

Traders are also monitoring U.S. stocks. Further declines could weigh on the risk-sensitive Australian dollar, Attrill said.