AUD/USD climbs above 200-DMA – BBH

FXStreet Insights Team FXStreet

AUD/USD rallies as Australia’s October inflation prints hotter than expected, reinforcing the RBA’s hold stance and contrasting with aggressive Fed easing expectations, BBH FX analysts report.

Australia October CPI surprises to the upside at 3.8%

"AUD/USD rallied back above its 200-day moving average. Australia October inflation ran hot and backs the RBA’s on hold guidance. Headline CPI rose to a 17-month high at 3.8% y/y (consensus: 3.6%) vs. 3.6% in September driven by housing, food and non-alcoholic beverages, and recreation and culture. The policy-relevant trimmed mean CPI unexpectedly increased to a one year high at 3.3% y/y (consensus: 3.0%) vs. 3.2% in September."

"For reference, the RBA projects headline and trimmed mean annual inflation of 3.3% and 3.2% by December, respectively. Of note, the October CPI print is the first complete monthly measure of the CPI following the Australian Bureau of Statistics transition away from the quarterly report."

"We remain constructive on AUD/USD. The swaps curve is betting on RBA rate hikes over the next year, in sharp contrast to the nearly 100bps of easing priced for the Fed."

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

AUD/USD falls to near 0.7100 after slipping below 50-day EMA

AUD/USD depreciates after registering minor gains in the previous day, trading around 0.7120 during the Asian hours. The technical analysis of the daily chart shows the pair consolidating sideways within a rectangle pattern, as neither bulls nor bears gain control. The AUD/USD pair is holding a slight bearish tone however as it sits beneath both the nine-day and 50-day EMAs.

Japanese Yen edges up but remains close to the 160.00 intervention threshold

The Japanese Yen edges up against the US Dollar on Friday, but the USD/JPY pair remains above 159.90 at the time of writing, unable to put a significant distance from the 160.00 level, considered the limit of tolerable JPY weakness for Japanese authorities.

Gold returns to the red, awaits US NFP

Gold price is looking to test the weekly lows, while in the red near $4,450 in the early European session on Friday. The precious metal remains vulnerable amid ongoing geopolitical turmoil. Traders will closely monitor the developments surrounding the US-Iran peace deal and the US May employment report later on Friday.

Indian Rupee jumps as RBI holds, but unveils measures to boost foreign inflows

The Reserve Bank of India held the Repo Rate at 5.25%, as widely expected, on Friday. But the central bank unveiled various measures to boost foreign inflows into the economy, lifting the Indian Rupee against the US Dollar.

Top 3 Price Prediction: Bitcoin eyes $60,000, Ethereum risks $1,750, XRP could test $1

Bitcoin, Ethereum, and Ripple prices edge lower on Friday, extending a steady decline of roughly 15% so far this week. Institutional outflows weigh on Bitcoin and Ethereum while XRP largely follows the broader market trend.

Recession on paper: What really moves the Canadian Loonie now?

Statistics Canada handed the headline writers a gift and the analysts a headache. Real GDP shrank 0.1% on an annualized basis in the first quarter, and with the fourth quarter of 2025 revised down to a 1.0% contraction, that is two negative quarters in a row, the textbook definition of a technical recession and Canada's first since the pandemic.