AUD/USD edges higher on RBA hawkish tone, labor market resilience eyed
AUD/USD climbs slightly on Wednesday toward 0.6530 at the time of writing, supported by renewed demand for the Australian Dollar (AUD) ahead of the release of October’s employment report due on Thursday.
  • The Australian Dollar rises against the US Dollar, supported by expectations of a restrictive policy stance from the RBA.
  • Investors await Australia’s October employment figures, expected to confirm the resilience of the labor market.
  • The US Dollar weakens as markets increase bets on a more dovish Federal Reserve.

AUD/USD climbs slightly on Wednesday toward 0.6530 at the time of writing, supported by renewed demand for the Australian Dollar (AUD) ahead of the release of October’s employment report due on Thursday. Markets remain convinced that the Reserve Bank of Australia (RBA) will maintain a restrictive policy stance in its upcoming meetings, as inflationary pressures prove persistent.

Inflation accelerated to 1.3% in the third quarter, compared with 0.7% in the previous quarter. RBA Deputy Governor Andrew Hauser stated at a UBS conference in Sydney that monetary policy must remain sufficiently restrictive to bring inflation back to target, adding that the Australian economy “continues to run above its potential,” limiting the room for near-term rate cuts.

Traders now turn their focus to Thursday’s employment report, with consensus expecting the addition of 20,000 new jobs in October after 14,900 in September. A figure that would confirm the labor market’s resilience despite the global economic slowdown.

In the United States (US), the US Dollar (USD) is weakening as expectations rise for a Federal Reserve (Fed) rate cut as early as December. The US Dollar Index (DXY), which tracks the Greenback’s value against a basket of major currencies, trades near its weekly low around 99.30. According to the CME FedWatch tool, the chance of a 25-basis-point rate cut to 3.50%-3.75% has climbed to 68%, up from 62% earlier in the week.

Overall, investors remain cautious ahead of the release of delayed US economic indicators due to the ongoing budget impasse in Washington. This uncertainty continues to weigh on the US Dollar and support AUD/USD.

Australian Dollar Price Today

The table below shows the percentage change of Australian Dollar (AUD) against listed major currencies today. Australian Dollar was the strongest against the Japanese Yen.

USD EUR GBP JPY CAD AUD NZD CHF
USD 0.05% 0.43% 0.48% 0.02% -0.12% -0.11% -0.30%
EUR -0.05% 0.39% 0.43% -0.03% -0.17% -0.16% -0.35%
GBP -0.43% -0.39% 0.04% -0.41% -0.55% -0.54% -0.74%
JPY -0.48% -0.43% -0.04% -0.45% -0.59% -0.59% -0.78%
CAD -0.02% 0.03% 0.41% 0.45% -0.14% -0.14% -0.33%
AUD 0.12% 0.17% 0.55% 0.59% 0.14% 0.01% -0.18%
NZD 0.11% 0.16% 0.54% 0.59% 0.14% -0.01% -0.19%
CHF 0.30% 0.35% 0.74% 0.78% 0.33% 0.18% 0.19%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Australian Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent AUD (base)/USD (quote).

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Name / Symbol
Chart
% Change / Price
GBPUSD
1 D change
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0
EURUSD
1 D change
+0%
0
USDJPY
1 D change
+0%
0

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