Australian Dollar defies rising yields as AUD/USD closes in on 0.70
- AUD/USD rises 0.37% to 0.6972 for second straight session.
- US services cool, but surging input costs revive inflation fears.
- Bullock says three RBA hikes could tame inflation toward target.
The Aussie Dollar registers back-to-back days of gains on Monday, even though US Treasury yields edged higher, underpinning the US Dollar, which appreciated against a basket of six currencies but not versus the Australian Dollar. The AUD/USD trades at 0.6972, up 0.37%.
Aussie resilience holds firm as Wall Street gains offset higher US yields
Wall Street ended Monday’s session with gains, as tech stocks drove the Nasdaq and the S&P 500 higher, even though energy prices remain elevated, sparking a jump in US yields. West Texas Intermediate (WTI) edged lower on news that Europe will withdraw 100 million barrels of diesel and crude from their reserves, while news reported that the traffic is intensifying around the Strait of Hormuz.
The US ISM Services PMI in September eased from 55.4 to 54.9, below forecasts of 55. The index expanded for the 27th straight month, though input costs rose sharply, igniting inflation fears amongst businesses.
Aside from this, the US economic schedule will be light until the release of the Fed’s last meeting minutes on Wednesday, October 7, ahead of Initial Jobless Claims the day after, and Friday’s University of Michigan Consumer Sentiment.
In Australia, the economic docket will feature the AIG Industry Index in August, followed by the release of October’s Consumer Inflation Expectations on October 7.
The Aussie Dollar advanced even though money markets expect the Reserve Bank of Australia (RBA) to remain on hold at least until May of 2027. This happened during RBA Governor Bullock's press conference, when she said that she expected hiking rates three times could be enough to push inflation lower towards the central bank’s target.
AUD/USD Price Forecast: Technical outlook
In the daily chart, AUD/USD trades at 0.6969, keeping a bearish near-term bias as spot holds below the cluster of upward-sloping trend lines and the 50-day simple moving average (SMA) grouped around 0.7086–0.7090. The latest reading of the Relative Strength Index (14) at 34.5 sits just above oversold territory, hinting that while downside momentum is still dominant, selling pressure may be losing some intensity rather than accelerating.
On the topside, immediate resistance is seen at the dense band formed by the upward support-turned-resistance lines around 0.7086–0.7087, followed by the 50-day SMA at 0.7090 and then additional trend-line hurdles near 0.7111 and 0.7118, with a more distant horizontal barrier at 0.7198. On the downside, initial support appears at the recent low near 0.6946, while a deeper floor is referenced by the older downward trend-line break level around 0.6367, which would come into focus only if the current bearish tone extends significantly.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
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 Euro.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.34% | 0.15% | 0.03% | 0.07% | -0.31% | 0.37% | 0.28% | |
| EUR | -0.34% | -0.15% | -0.27% | -0.22% | -0.48% | -0.04% | -0.03% | |
| GBP | -0.15% | 0.15% | -0.10% | -0.09% | -0.33% | 0.10% | 0.12% | |
| JPY | -0.03% | 0.27% | 0.10% | 0.03% | -0.26% | 0.23% | 0.25% | |
| CAD | -0.07% | 0.22% | 0.09% | -0.03% | -0.28% | 0.18% | 0.19% | |
| AUD | 0.31% | 0.48% | 0.33% | 0.26% | 0.28% | 0.44% | 0.46% | |
| NZD | -0.37% | 0.04% | -0.10% | -0.23% | -0.18% | -0.44% | 0.00% | |
| CHF | -0.28% | 0.03% | -0.12% | -0.25% | -0.19% | -0.46% | -0.01% |
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
Christian Borjon Valencia
FXStreet
Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.
