AUD/USD bounces off to 0.6755 as risk sentiment improves

AUD/USD benefits from the shift in market attention amid trade-positive headlines.
Trump’s press conference, UNGA favored risk-on amid a lack of major data/events.

Anil Panchal FXStreet

With the latest trade/political headlines shifting market attention from the US Dollar (USD) strength to trade-positive catalysts, the AUD/USD pair recovers to 0.6755 during early Asian session on Thursday.

Not only the US President Donald Trump’s comments signaling the trade deal with China during his latest press conference but headlines from the United Nations General Assembly (UNGA), by Japan, also favored markets’ risk sentiment.

Adding to the pullback could be the greenback’s profit-booking wave following heavy upside on Wednesday. Doubts over the future of President Trump as the US leader also seem to contribute to the USD’s recent declines.

Portraying the moves, the US 10-year Treasury yields stay positive while S&P500 Futures also refrains from declines.

Moving on, trade/political headlines, the US Gross Domestic Product (GDP) and comments from the Federal Reserve Bank of St. Louis President James Bullard and the Federal Reserve Governor Richard Clarida are likely key catalysts to watch during the rest of the day.

While no change is expected in the annualized 2.0% figure of the US Final GDP for Q2, Fedspeak will be closely observed to foresee the US Federal Reserve’s next move. Further, Aussie buyers might prefer being on the sideline ahead of the next week’s Reserve Bank of Australia (RBA) meeting after latest comments from the Governor increases the odds of another rate cut from the Australian central bank.

Technical Analysis

Pair’s repeated failures to decline below 0.6735 support including lows marked on August 14 and 23, pair’s another uptick to 0.6805/10 area including 10-day simple moving average (SMA) can’t be denied. In a case prices slip below 0.6735, 0.6700 and August month bottom surrounding 0.6675 could lure bears.

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

AUD/USD consolidates above 0.6950 amid risk aversion

AUD/USD consolidates in the Asian session on Thursday, trading just above 0.6950 as traders assess developments in the Middle East crisis. The Pentagon reportedly ordered readiness for potential strikes against Iran. This keeps the geopolitical risk premium in play, which, along with hawkish FOMC Minutes and elevated US bond yields, will likely keep the US Dollar underpinned at the expense of the pair.

USD/JPY slips below 158.00 as USD retreats

USD/JPY returns to the red below 158.00 in the Asian session on Thursday amid speculation that authorities will step in to prop up the Japanese Yen. Meanwhile, the US Dollar eases from near an 18-month high on profit taking, ignoring Wednesday's hawkish FOMC Minutes and the risk of a further escalation of tensions in the Middle East, adding to the pair's pullback.

Gold clings to daily gains; still below $4,150

Gold regains some composure and climbs back to the vicinity $4,150 mark per troy ounce amid decent gains on Thursday. The yellow metal’s recovery follows some loss of momentum in the US Dollar strength and a decent drop in US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP extend sell-off amid ETF outflows

Bitcoin (BTC) extends its decline below $83,000 on Thursday as heightened selling pressure weighs on the market. Leading altcoins, including Ethereum (ETH) and Ripple (XRP), mirror the sector-wide pullback, with ETH dipping under $2,600 and XRP challenging support at $1.40.

ECB expected to pause in October before hiking rates in December – Reuters poll

The European Central Bank (ECB) is expected to leave interest rates unchanged in October before delivering another increase in December, according to a Reuters poll conducted October 5-8. The survey shows that 70 of 73 economists expect the ECB to hold its deposit rate at 2.50% on October 29, while 64 of 73 anticipate a 25-basis-point (bps) hike in December.

The UK 30-year gilt just hit a 1998 high. Is that good or bad for the British Pound?

The yield on the UK's 30-year government bond, or gilt, went through 6% on October 1 for the first time since early 1998, and on Monday the Pound was at its strongest against the Euro since June 2025. The gilt market's 28-year high is mostly someone else's. Since early May, the 30-year gilt yield has risen about 0.15 of a percentage point and the US 30-year about 0.7.