Forex Today: Australian Dollar rises on RBA hike, US data postponed once again
Here is what you need to know on Tuesday, February 3:
The Australian Dollar (AUD) gathers strength against its rivals early Tuesday following the Reserve Bank of Australia's (RBA) monetary policy announcements. In the second half of the day, the US economic calendar will feature the RealClearMarkets/TIPP Economic Optimism Index data for February and several Federal Reserve (Fed) policymakers will be delivering speeches.
The RBA announced that it raised the policy rate by 25 basis points (bps) to 3.85% following the February meeting, as anticipated. In the policy statement, the RBA noted that some indicators suggest financial conditions may now be "somehat accommodative," adding that they expect the inflation to remain above targe for "some time." In the post-meeting press conference, RBA Governor Michele Bullock said that the inflation pulse is too strong and that they cannot allow inflation to get away. AUD/USD gathered bullish momentum after this event and was last seen rising more than 1% on the day at 0.7020.
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 US Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.20% | -0.13% | -0.05% | -0.08% | -0.96% | -0.62% | -0.23% | |
| EUR | 0.20% | 0.07% | 0.15% | 0.12% | -0.76% | -0.42% | -0.04% | |
| GBP | 0.13% | -0.07% | 0.09% | 0.05% | -0.83% | -0.49% | -0.10% | |
| JPY | 0.05% | -0.15% | -0.09% | -0.01% | -0.89% | -0.56% | -0.16% | |
| CAD | 0.08% | -0.12% | -0.05% | 0.00% | -0.88% | -0.55% | -0.15% | |
| AUD | 0.96% | 0.76% | 0.83% | 0.89% | 0.88% | 0.34% | 0.75% | |
| NZD | 0.62% | 0.42% | 0.49% | 0.56% | 0.55% | -0.34% | 0.39% | |
| CHF | 0.23% | 0.04% | 0.10% | 0.16% | 0.15% | -0.75% | -0.39% |
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).
Late Monday, the US Bureau of Labor Statistics (BLS) announced that they will not be releasing data because of the partial government shutdown. “The Job Openings and Labor Turnover Survey release for December 2025, Metropolitan Area Employment and Unemployment release for December 2025, and the Employment Situation release for January 2026 will be rescheduled upon the resumption of government funding,” Emily Liddel, associate commissioner for the BLS’ Office of Publications and Special Studies explained.
After rising about 0.5% on Monday, the US Dollar (USD) Index stays on the back foot and fluctuates below 97.50 in the European morning on Tuesday. Meanwhile, US stock index futures rise between 0.1% and 0.5% on the day, reflecting an improving risk mood.
Gold (XAU/USD) lost more than 4% on Monday but managed to reverse its direction early Tuesday. At the time of press, XAU/USD was up nearly 5% on the day, trading slightly below $4,900. Similarly, Silver (XAG/USD) turns north after losing nearly 7% on Monday and trades above $86, rising about 8.5%.
EUR/USD benefits from the selling pressure surrounding the USD and trades in positive territory above 1.1800 after posting losses for two consecutive trading days. The European Central Bank (ECB) will announce monetary policy decisions on Thursday.
GBP/USD holds its ground early Tuesday and trades marginally higher on the day, at around 1.3700.
USD/JPY rose more than 0.5% on Monday but met resistance before testing 156.00. The pair stays relatively calm in the European morning on Tuesday and fluctuates at around 155.50.
Australian Dollar FAQs
One of the most significant factors for the Australian Dollar (AUD) is the level of interest rates set by the Reserve Bank of Australia (RBA). Because Australia is a resource-rich country another key driver is the price of its biggest export, Iron Ore. The health of the Chinese economy, its largest trading partner, is a factor, as well as inflation in Australia, its growth rate and Trade Balance. Market sentiment – whether investors are taking on more risky assets (risk-on) or seeking safe-havens (risk-off) – is also a factor, with risk-on positive for AUD.
The Reserve Bank of Australia (RBA) influences the Australian Dollar (AUD) by setting the level of interest rates that Australian banks can lend to each other. This influences the level of interest rates in the economy as a whole. The main goal of the RBA is to maintain a stable inflation rate of 2-3% by adjusting interest rates up or down. Relatively high interest rates compared to other major central banks support the AUD, and the opposite for relatively low. The RBA can also use quantitative easing and tightening to influence credit conditions, with the former AUD-negative and the latter AUD-positive.
China is Australia’s largest trading partner so the health of the Chinese economy is a major influence on the value of the Australian Dollar (AUD). When the Chinese economy is doing well it purchases more raw materials, goods and services from Australia, lifting demand for the AUD, and pushing up its value. The opposite is the case when the Chinese economy is not growing as fast as expected. Positive or negative surprises in Chinese growth data, therefore, often have a direct impact on the Australian Dollar and its pairs.
Iron Ore is Australia’s largest export, accounting for $118 billion a year according to data from 2021, with China as its primary destination. The price of Iron Ore, therefore, can be a driver of the Australian Dollar. Generally, if the price of Iron Ore rises, AUD also goes up, as aggregate demand for the currency increases. The opposite is the case if the price of Iron Ore falls. Higher Iron Ore prices also tend to result in a greater likelihood of a positive Trade Balance for Australia, which is also positive of the AUD.
The Trade Balance, which is the difference between what a country earns from its exports versus what it pays for its imports, is another factor that can influence the value of the Australian Dollar. If Australia produces highly sought after exports, then its currency will gain in value purely from the surplus demand created from foreign buyers seeking to purchase its exports versus what it spends to purchase imports. Therefore, a positive net Trade Balance strengthens the AUD, with the opposite effect if the Trade Balance is negative.
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
