US Job Openings Drop to Lowest Since 2021; Traders Bet on Fed Rate Cuts in 2023 as Inflation Cools
• U.S. job openings dropped in October to the lowest level since early 2021, coming in below estimates.
• The slowing labor market and subsiding inflation have raised optimism that the Fed is likely done raising interest rates this cycle.
• The dollar index was up slightly, reversing some of November's heavy selloff that stripped 3% off the index.
• Traders have priced in at least 125 basis points of Fed rate cuts in 2023, with a good chance of 50 bps by June.
• The Australian dollar fell below Monday's 4-month high after the Reserve Bank of Australia kept rates unchanged at a 12-year high of 4.35% on Tuesday.