Currencies Weaken Against USD as Data Supports Cautious Risk Sentiment

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Forex Market 

AUD: RBA Pushes Back on Near-Term Cuts; USD Firms on Data
The Australian dollar traded softer as the U.S. dollar strengthened on better-than-expected U.S. data, while Reserve Bank commentary reinforced a cautious policy outlook. RBA Deputy Governor Hauser said the likelihood of further rate cuts in the near term remains very low, noting that inflation is still too high. Despite little immediate reaction, the Australian dollar drifted lower into the European and U.S. sessions.
The Australian dollar settled near the lower end of its trading range. The euro weakened through the European session and remained soft into late trade. Sterling also edged lower, while the U.S. dollar strengthened against the yen. The New Zealand dollar softened, and the Canadian dollar outperformed as the U.S. dollar eased against it. Overall, the U.S. dollar index held firm.
Buying interest in the Australian dollar is expected to emerge on further weakness, while selling interest is seen on rallies.

General Market

Wall Street
  • Dow Jones: +0.5% (49,257)
  • S&P 500: -0.1% (6,913)
  • Nasdaq: -0.6% (23,449)
  • VIX: +1.4% (15.60)
Asia-Pacific
  • ASX 200: +0.3% (8,721) – tech and healthcare led gains
  • Nikkei: -1.6% (51,117)
  • Shanghai Composite: -0.1% (4,083)
Europe
  • FTSE: 0.0% (10,045)
  • DAX: 0.0% (25,127)
  • CAC: +0.1% (8,243)

Headlines to Watch

United States
  • Markets await Nonfarm Payrolls for direction on Fed policy after mixed jobless claims and a sharply narrower trade deficit.
  • Comments from Fed member Miran suggesting 150bp of cuts in 2026 drew little market reaction.
Australia
  • RBA Deputy Governor Hauser reiterates that near-term rate cuts are “very low”, keeping AUD sensitive to global USD moves rather than domestic easing expectations.
China
  • CPI expected to rise further to +0.8% y/y, driven mainly by food prices, while PPI remains negative, highlighting ongoing demand softness.
Canada
    • Unemployment rate likely to edge higher to 6.7%, though seen as past its peak, supporting expectations of a gradual labour market improvement.
Currency PairMid-market Rate
AUD/USD0.6699
AUD/NZD1.1651
AUD/JPY105.11
AUD/CNY4.6780
AUD/EUR0.5746
AUD/GBP0.4985
AUD/HKD5.2197

 

 

 

 

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