The AUD/USD pair continues to rise for the third consecutive session, driven by US economic data suggesting a potential interest rate cut by the Federal Reserve next week.
Recent reports from the US Labor Department show an increase in Initial Jobless Claims, surpassing previous figures. Additionally, US factory inflation has exceeded expectations, mainly due to higher service costs.
With August’s US Consumer Price Index data indicating a drop in headline inflation but an increase in core inflation, the Fed is expected to kick off an easing cycle with a 25-basis points interest rate cut in September. Investors are now awaiting the Michigan Consumer Sentiment Index release.
Market Update: Australian Dollar Strengthens on Improved Risk Sentiment
- The US Producer Price Index (PPI) rose to 0.2% in August, above the forecasted 0.1% increase.
- US Initial Jobless Claims for the week ended September 6 rose slightly to 230K, as expected.
- Former RBA Governor Bernie Fraser criticizes RBA Board for inflation focus over job market concerns.
- Australia’s Consumer Inflation Expectations ease to 4.4% in September.
- US Consumer Price Index falls to 2.5% YoY in August.
- US core CPI remains unchanged at 3.2% YoY.
- Democratic nominee Kamala Harris wins first US presidential debate focused on economic policies.
- RBA Assistant Governor Sarah Hunter predicts economic downturn due to high interest rates.
Technical Analysis: AUD/USD Pair Breaks Resistance Levels
The AUD/USD pair is trading near 0.6730, signaling a bullish trend after breaking above the descending channel. The RSI also indicates a shift to bullish momentum.
Key levels to watch include 0.6798 as immediate resistance and 0.6707 as support.
Further downside could lead to a retest of 0.6600, while a return to the descending channel would reinforce bearish sentiment.
AUD/USD: Daily Chart
Australian Dollar PRICE Today
The table below shows the percentage change of Australian Dollar (AUD) against major currencies today, with AUD being strongest against NZD.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.05% | -0.07% | 0.05% | -0.43% | 0.00% | 0.05% | -0.05% | -0.16% |
| EUR | 0.12% | -0.06% | 0.03% | -0.38% | 0.10% | 0.07% | -0.10% | -0.09% |
| GBP | 0.16% | 0.06% | 0.06% | -0.30% | 0.12% | 0.16% | -0.17% | -0.05% |
Australian Dollar FAQs
Learn more about the factors influencing the Australian Dollar (AUD) and how they impact its value against major currencies.
Click here to read the FAQs
1. Interest rates, resource prices, Chinese economy, and inflation are key drivers of the AUD.
2. RBA’s interest rate decisions directly affect the AUD’s value.
3. The health of the Chinese economy plays a significant role in AUD’s value.
4. Iron Ore prices and Trade Balance influence the AUD’s performance.