USD Steadies as Markets Weigh Trade Tensions; AUD Slips on China Headlines

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Forex Market 

USD: Wall St. Rallies; AUD Steady Ahead of CPI and Shutdown Developments

Wall Street kicked off the week on a strong note, with major indices extending gains as investor sentiment improved. The Nasdaq rose +1.5%, S&P 500 +1.2%, and Dow Jones +1.1%. U.S. 10-year yields eased 2bps to 3.98%, while Brent Crude slipped 0.6% to $60.90/bbl.
The AUD/USD traded between 0.6484–0.6521, settling near 0.6510 ahead of the Asian session as markets awaited key CPI data and updates on the U.S. government shutdown.
Asian equities also advanced, led by Nikkei +3.4%, Hang Seng +2.4%, and ASX 200 +0.4%. In Europe, DAX +0.9%, FTSE +0.4%, and CAC was flat before softening after a U.S. court ruling against BNP Paribas pressured French bank shares.
EUR/USD and GBP/USD touched highs of 1.1675 and 1.3441 before retreating as the USD strengthened. USD/CAD climbed to 1.4051 after a weak BoC Business Outlook Survey, while NZD/USD stayed firm following an inline 3Q CPI print.
  • AUD/USD traded in a narrow 0.6484–0.6521 range, with bids near 0.6420 and resistance around 0.6530/40.
  • EUR/USD fell to 1.1644 lows as the USD firmed in late NY trade.
  • GBP/USD eased to 1.3400, while USD/CAD reached 1.4051 before drifting lower.
  • NZD/USD traded between 0.5718–0.5751, little changed after the inflation release.
  • AUD/NZD held steady between 1.132–1.136.

Key Economic Data Ahead (Sydney Time)

 

General Market

Wall Street
  • Dow Jones +1.2% to 46,731
  • S&P 500 +1.1% to 6,734
  • Nasdaq +1.4% to 23,008
  • VIX -11.0% to 18.49
Asia-Pacific
  • ASX 200 +0.4% to 9,032
  • Shanghai Comp +0.6% to 3,864
  • Nikkei +3.4% to 49,186
Europe
  • FTSE +0.5% to 9,404
  • DAX +1.8% to 24,259
  • CAC +0.4% to 8,206

Headlines to Watch 

  • United States:
    The U.S. government shutdown continues, halting most data collection. No major releases expected until Thursday’s CPI, which will proceed despite the closure as staff have been recalled.
  • Canada:
    September CPI prints later tonight — results could guide BoC’s upcoming rate decision. Markets currently price a 50% chance of a 25bps rate cut.
  • Australia:
    AUD/USD held steady between 0.6484–0.6521, with firm demand expected near 0.6420 and resistance around 0.6530/40.

Mid-market rates

Currency PairMid-market Rate
AUD/USD0.6515
AUD/NZD1.1341
AUD/JPY98.24
AUD/CNY4.6385
AUD/EUR0.5596
AUD/GBP0.4861
AUD/HKD5.0609

 

 

 

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