|

AUD/USD declines as US Dollar firms, RBA policy meeting in focus

  • The US ISM Manufacturing PMI drops to 48.7 in October, signaling ongoing contraction.
  • Expectations for a December Fed rate cut ease, lending mild support to the US Dollar.
  • Traders remain cautious ahead of the Reserve Bank of Australia’s policy meeting.

AUD/USD weakens on Monday, trading around 0.6530 at the time of writing, down 0.25% on the day. The Australian Dollar (AUD) pullback comes as the US Dollar (USD) finds modest support following the Federal Reserve’s (Fed) meeting last week, and despite the release of weaker US manufacturing data earlier in the day, while traders remain cautious ahead of the Reserve Bank of Australia (RBA) policy decision on Tuesday.

The US Institute for Supply Management’s (ISM) Manufacturing Purchasing Managers’ Index (PMI) fell to 48.7 in October, down from 49.1 in September and below market expectations of 49.5, dipping into contraction territory. Subcomponents of the report showed slight improvements in New Orders and Employment, while the Prices Paid Index dropped to 58, indicating easing cost pressures in the sector.

Despite the disappointing data, the US Dollar Index (DXY) holds slightly higher for the day as investors adjust their positions before the Fed’s December meeting. According to the CME FedWatch tool, markets now price a roughly 68% chance of a rate cut in December, down from over 90% a week earlier.

In Australia, traders remain cautious ahead of Tuesday’s RBA meeting, where policymakers are widely expected to keep the Official Cash Rate at 3.6% after three consecutive cuts earlier this year. Third-quarter inflation data came in hotter than expected, while RBA Governor Michele Bullock noted that the labor market remains tight, supporting a wait-and-see approach on policy.

Meanwhile, China’s manufacturing slowdown, with the Manufacturing PMI slipping to 50.6 in October, and renewed trade tensions between Washington and Beijing continue to cloud the regional outlook and weigh on the Aussie.

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 Swiss Franc.

USDEURGBPJPYCADAUDNZDCHF
USD0.23%0.24%0.06%0.45%0.37%0.38%0.43%
EUR-0.23%0.03%-0.21%0.22%0.14%0.17%0.22%
GBP-0.24%-0.03%-0.18%0.19%0.13%0.14%0.21%
JPY-0.06%0.21%0.18%0.39%0.33%0.47%0.41%
CAD-0.45%-0.22%-0.19%-0.39%-0.10%-0.05%0.00%
AUD-0.37%-0.14%-0.13%-0.33%0.10%0.03%0.10%
NZD-0.38%-0.17%-0.14%-0.47%0.05%-0.03%0.06%
CHF-0.43%-0.22%-0.21%-0.41%-0.01%-0.10%-0.06%

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).

Author

Ghiles Guezout

Ghiles Guezout is a Market Analyst with a strong background in stock market investments, trading, and cryptocurrencies. He combines fundamental and technical analysis skills to identify market opportunities.

More from Ghiles Guezout
Share:

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

By subscribing you agree to our Terms and conditions.

Editor's Picks

EUR/USD moves sideways below 1.1800 on Christmas Eve

EUR/USD struggles to find direction and trades in a narrow channel below 1.1800 after posting gains for two consecutive days. Bond and stock markets in the US will open at the usual time and close early on Christmas Eve, allowing the trading action to remain subdued. 

GBP/USD keeps range around 1.3500 amid quiet markets

GBP/USD keeps its range trade intact at around 1.3500 on Wednesday. The Pound Sterling holds the upper hand over the US Dollar amid pre-Christmas light trading as traders move to the sidelines heading into the holiday season. 

Gold retreats from record highs, trades below $4,500

Gold retreats after setting a new record-high above $4,520 earlier in the day and trades in a tight range below $4,500 as trading volumes thin out ahead of the Christmas break. The US Dollar selling bias remains unabated on the back of dovish Fed expectations, which continues to act as a tailwind for the bullion amid persistent geopolitical risks.

Bitcoin slips below $87,000 as ETF outflows intensify, whale participation declines

Bitcoin price continues to trade around $86,770 on Wednesday, after failing to break above the $90,000 resistance. US-listed spot ETFs record an outflow of $188.64 million on Tuesday, marking the fourth consecutive day of withdrawals.

Economic outlook 2026-2027 in advanced countries: Solidity test

After a year marked by global economic resilience and ending on a note of optimism, 2026 looks promising and could be a year of solid economic performance. In our baseline scenario, we expect most of the supportive factors at work in 2025 to continue to play a role in 2026.

Avalanche struggles near $12 as Grayscale files updated form for ETF

Avalanche trades close to $12 by press time on Wednesday, extending the nearly 2% drop from the previous day. Grayscale filed an updated form to convert its Avalanche-focused Trust into an ETF with the US Securities and Exchange Commission.