Australian Dollar firms as US Dollar softens

AUD/USD trades higher despite stronger-than-expected US jobless claims.
US Initial Jobless Claims fell to 215K, but the Greenback failed to gain traction.
China remains a key driver for the Aussie, with the former's PPI inflation rising 4.1% YoY, while its CPI slowed to 1.0%.

Agustin Wazne FXStreet

AUD/USD trades higher near the 0.6940 area on Thursday, as the Australian Dollar (AUD) benefits from a softer US Dollar (USD), even after stronger-than-expected United States (US) jobless claims data showed that the labor market remains stable.

US Initial Jobless Claims fell to 215K, below expectations of 218K and the previous 217K, suggesting that layoffs remain limited. However, the Greenback failed to gain strong traction as the broader US Dollar Index (DXY) slipped for a second straight session, while markets continued to assess geopolitical risks and the Federal Reserve’s (Fed) policy outlook.

China also remains a key driver for the Aussie, given Australia’s strong trade exposure. China’s Producer Price Index (CPI) report, released late Wednesday, showed a 4.1% YoY rise in June, the fastest pace in four years, while China's Consumer Price Index (CPI) slowed to 1% YoY, highlighting stronger factory-gate inflation but still-soft domestic demand. This mixed backdrop may limit the Aussie’s upside even as AUD/USD benefits from USD weakness.

Short-term technical analysis:

On the 4-hour chart, AUD/USD trades at 0.6939, hovering around the 100-period Simple Moving Average (SMA), which acts as a pivot after the latest consolidation. The pair holds above the 20-period SMA at 0.6937, offering nearby dynamic support, while a horizontal band of resistance between 0.6940 and 0.6946 caps the topside. The Relative Strength Index (RSI) at 5 sits in neutral territory, hintng at balanced momen and reinforcing a range-bound near-term bias.

On the topside, immediate resistance is seen at 0.6940, followed by clustered barriers at 0.6944 and 0.6946, where repeated rejection could keep the pair confined to a tight range. On the downside, support is located first at the 20-period SMA at 0.6937, ahead of the horizontal floor at 0.6932. A sustained break below this area would open the door to a deeper pullback despite the current neutral momentum backdrop.

(The technical analysis of this story was written with the help of an AI tool. Know more.)

Author

Agustin Wazne

FXStreet

Agustin Wazne joined FXStreet as a Junior News Editor, focusing on Commodities and covering Majors.

AUD/USD consolidates above 0.6950 amid risk aversion

AUD/USD consolidates in the Asian session on Thursday, trading just above 0.6950 as traders assess developments in the Middle East crisis. The Pentagon reportedly ordered readiness for potential strikes against Iran. This keeps the geopolitical risk premium in play, which, along with hawkish FOMC Minutes and elevated US bond yields, will likely keep the US Dollar underpinned at the expense of the pair.

USD/JPY slips below 158.00 as USD retreats

USD/JPY returns to the red below 158.00 in the Asian session on Thursday amid speculation that authorities will step in to prop up the Japanese Yen. Meanwhile, the US Dollar eases from near an 18-month high on profit taking, ignoring Wednesday's hawkish FOMC Minutes and the risk of a further escalation of tensions in the Middle East, adding to the pair's pullback.

Gold rebounds from two-month lows; will it sustain?

Gold is bouncing back toward $4,150 early Thursday after defending $4,100 on Wednesday. US Dollar retreats on profit-taking, despite high Treasury yields and hawkish Fed Minutes. Risks remain skewed to the downside for Gold while RSI stays bearish.

Cryptocurrencies face new security risk as Ethereum researcher warns of potential ECDSA break

Ethereum (ETH) researcher Justin Drake has urged the crypto industry to begin preparing for a potential breakthrough that could undermine the cryptographic systems securing digital assets. In an X post on Wednesday, Drake called on the industry to calmly enter what he described as “bunker mode.”

The Fed trap is tightening

Gold is getting punched in the mouth again today. And if you’ve been following this bull market for any length of time, you know that’s not necessarily a bad thing. In fact, it may be giving us exactly the opportunity we’ve been waiting for.

The UK 30-year gilt just hit a 1998 high. Is that good or bad for the British Pound?

The yield on the UK's 30-year government bond, or gilt, went through 6% on October 1 for the first time since early 1998, and on Monday the Pound was at its strongest against the Euro since June 2025. The gilt market's 28-year high is mostly someone else's. Since early May, the 30-year gilt yield has risen about 0.15 of a percentage point and the US 30-year about 0.7.