As the US dollar gives back some of its recent gains, the australian dollar and new zealand dollar held steady on Wednesday (November 20), earlier reaching a one-week high, and are expected to continue the upward trend for the fourth trading day.

The market is awaiting who incoming President Trump will select as Treasury Secretary, and how likely this candidate is to advance Trump's comprehensive tariff and tax proposals; the dollar's rise has paused.

The australian dollar continues to gain some support from a stable interest rate outlook, as the last minutes from the australian reserve bank indicated that the bank remains vigilant about the risks of rising inflation.

Analysts at jpmorgan wrote in a report: "Compared to macro data and global peers, the tone of the australian central bank remains hawkish, but we expect it to shift to a dovish stance in future communications." "We continue to predict the first rate cut in February, but it should be noted that this is a close prediction as the decision is heavily data-dependent."

The market indicates that the likelihood of a cash rate cut to 4.35% in February is only 37%, while the possibility of a cut in April is 58%, and a 25 basis point cut will only be fully accepted by the market in May.

The next important economic data is the CPI for October, which will be released on November 27, and is expected to decline again after a significant year-on-year drop to 2.1% in September.

In September, the average measurement of core inflation slowed to 3.2%, and it is possible that in October it may reach the upper limit of the australian reserve bank's 2%-3% range.

The Reserve Bank of New Zealand will hold a meeting next week, and investors believe that the bank will lower the cash rate of 4.75% by 50 basis points, making it lower than the Australian rate.

The market also expects that the likelihood of the bank cutting rates by another 50 basis points in February is 84%, with rates approaching 3.25% by the end of next year.