AUD/USD retreats from highs after strong ADP report, ISM PMI next

Haresh Menghani FXStreet

• ADP report beats consensus estimates.
• US bond yields spike after employment data.
• ISM PMI next, focus remains on FOMC.

The AUD/USD pair trimmed some of its early strong gains and retreated around 20-pips from session tops to currently trade around the 0.7670-65 band.

The US Dollar gained some additional traction in the last hour after the ADP report showed private-sector employers added more-than-expected jobs during the month of October and reaffirmed the underlying strength in the US labor market.

• US: Private sector employment increased by 235,000 jobs from Sep to Oct - ADP

Today's upbeat reading might have also fueled speculations for a firmer reading from Friday's official jobs report (NFP) and supported market expectations for December Fed rate hike expectations. The same is evident from a sharp spike in the US Treasury bond yields, which was eventually seen driving flows away from higher-yielding currencies - like the Aussie.

Barring the initial reaction, the pair lacked any strong follow-through momentum and continued holding with some minor daily gains as the commodity-linked Australian Dollar was being supported by buoyant sentiment around commodity space, especially copper and oil.

Next on tap would be the release of ISM manufacturing PMI, but again is likely to be overshadowed by pre-Fed repositioning trade.

Technical levels to watch

Immediate support remains near mid-0.7600s, which if broken decisively is likely to accelerate the pair's fall even below last Friday's multi-month lows support near 0.7625 level, and the 0.7600 handle, towards its next major support near the 0.7575-70 region.

On the upside, any up-move beyond 0.7680 level might continue to confront fresh supply at the very important 200-day SMA, currently near the 0.7700 handle, above which a bout of short-covering could lift the pair back towards 0.7750 resistance area.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

AUD/USD remains depressed near 0.6950 after RBA minutes

AUD/USD attracts follow-through selling during Tuesday’s Asian session, looking to extend the overnight rejection slide from 0.7000, or a two-week top, following the release of RBA meeting Minutes. The US Dollar retains a bullish undertone near its highest level since April 2025 as energy-driven inflation risks keep December Fed rate hike bets firmly on the table. Adding to this, geopolitical risks further underpin the safe-haven USD.

USD/JPY extends retreat below 158.50 as intervention risks loom

USD/JPY is dropping below 158.50 in the Asian session on Tuesday, snapping a two-day winning streak and pulling back from an over two-week top touched the previous day, despite Japan's soft PPI inflation print. Bulls turn cautious amid speculation that authorities will step in to prop up the Japanese Yen, which, in turn, weighs on the pair.

Gold range play extends amid geopolitics, ahead of US inflation test

Gold extends its struggle below $4,200 early Tuesday as geopolitical risks weigh. US Dollar pinned down by retreating Oil prices and US Treasury bond yields. Technically, the daily bearish RSI continues to caution Gold buyers.

Ripple-backed Evernorth goes live on Nasdaq with 473 million XRP treasury

Ripple-backed digital asset treasury firm Evernorth began trading on the Nasdaq on Monday under the ticker XRPN, giving traditional stock market investors exposure to XRP. The listing follows the completion of Evernorth’s business combination with Armada Acquisition Corp. II on Friday.

Asian stock markets plunge, KOSPI faces bloodbath amid chip competition from China

Asian stock markets face a significant sell-off in Tuesday’s session, tracking weakness in United States technology stocks seen on the Columbus Day. As of writing, KOSPI is leading losses with over 7% decline, Shanghai is down 1% to near 3,760, Nikkei 225 plunges almost 2.5% at around 67,350.

Has Bitcoin really escaped the macro forces it was built to fight?

Over 17 years ago, Satoshi Nakamoto designed Bitcoin (BTC) on the back of a global financial crisis as an alternative to the global monetary system outside the control of central banks, governments and traditional intermediaries. This raises a key question: has Bitcoin really become independent of the macroeconomic forces it was built to challenge?