AUD/USD: near-term losses may stall in the 0.7130/0.7160 area

Ross J Burland FXStreet

AUD/USD is currently trading at 0.7218 and has started out the week on the back foot following a risk-off day on Friday following the FOMC statement on Thursday.
The week ahead for Aussie traders is jam-packed, including Q3 wages and Oct employment, but the key releases are all Tuesday-Thursday.

AUD/USD fell from the 0.73 handle following the FOMC statement which puts the pair back on the longer term track to the downside as investors get behind the dollar once again. The divergence between the FOMC and RBA is in play following a disappointing RBA Statement on Monetary Policy on Friday. The pair then tried to steady just below the mid-point of the 0.72 handle but slipped further as US stocks continued to bleed following a risk-off session in Asia and Europe.

What's in store this week for Aussie traders?

Analysts at ING Bank noted that AUD/USD has managed to hold onto its gains quite well this week, despite a resurgent US dollar:

"Challenges this week will come from China, where Tuesday’s October Industrial Production data and the ever-present risk of USD/CNY breaking above 7.00 pose downside risks to the AUD. Our bearish call on the month is largely on the back of a strong USD and a view that the prospects of a US: China trade deal will have evaporated by early December. Also look out for Australia October jobs data on Wednesday. AUD/USD has recently broken out of a well-defined bear channel. This warns that any near-term losses may stall in the 0.7130/0.7160 area. If this is the case, then a subsequent break above the 0.7300 could deliver substantial follow-through. Just a word of caution here!

AUD/USD levels

Support levels: 0.7200 0.7170 0.7135.
Resistance levels: 0.7250 0.7280 0.7315.

Valeria Bednarik, Chief Analyst at FXStreet explained that technical readings in the daily chart are far from losing the positive tone:

"The 20 DMA maintains a firm bullish slope well below the current level, while technical indicators have barely retreated from overbought readings, holding well into positive ground with limited downward strength. Furthermore, the pair remains above the 61.8% retracement of its September/October decline at around 0.7200 now the immediate support. Below the level, bears will have more chances while above 0.7250 the scale will lean in favor of bulls. Shorter term, and according to the 4 hours chart, the bearish case is firmer, as the pair broke below its 20 SMA, now losing directional strength above the current level, while technical indicators maintain their bearish slopes well into negative ground."

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

AUD/USD consolidates above 0.7000; remains close to monthly top

AUD/USD holds steady above 0.7000 during the Asian session on Friday, trading just below the previous day's monthly low amid diverging forces. A hawkish RBA continues to support the Aussie, while the recent decline in US bond yields keeps the US Dollar depressed near a three-week low. However, oil-driven inflation fears reinforce Fed hike bets, which, along with geopolitical risks, could benefit the safe-haven buck and cap the currency pair.

USD/JPY declines to a one-week low; eyes trading range support near 157.50 on weaker USD

USD/JPY drops to a one-week low during Thursday’s Asian session, with bears now awaiting a break below multi-week range support near mid-157.00s before placing fresh bets amid a broadly weaker US Dollar. Despite bets for a December Fed rate hike and Middle East jitters, the recent decline in US bond yields keeps USD depressed near a three-week low. Moreover, hawkish BoJ expectations and intervention risks underpin the Japanese Yen, further weighing on the currency pair.

Gold falls to two‑month low below $4,050 as oil spikes

Gold price falls to the lowest in more than two months near $4,025 during the early Asian session on Friday. The precious metal faces some selling pressure as escalating tensions in the Middle East send oil surging ahead of a Federal Reserve policy meeting.

Bitcoin falls 4% as chip stocks plunge 6.7% and oil surges

Bitcoin (BTC) fell below $82,000 on Thursday as the crypto market joined a broader market sell-off driven by concerns over artificial intelligence (AI) spending, rising oil prices and escalating geopolitical tensions involving the US and Iran. The top crypto fell 4% to $81,130 as macro fears weighed on prices across the digital asset market.

The Bank of England just got its clearest reason to hike. Here's what it's really watching

UK inflation as measured by the CPI accelerated to 3.5% YoY in September, up from 3.1% in August, according to the Office for National Statistics. This is the highest level since October 2025, exceeding economists' expectations of 3.4% and pushing inflation further from the BoE's 2% target.

What November 3 means for the Fed's rate path and the US Dollar

The USD faces a decisive period ahead of the November 3 midterm elections. While markets anticipate another interest rate increase from the Fed in December, the battle for control of Congress could reshape fiscal policy expectations and, indirectly, the path of US monetary policy in 2027.