The Australian Dollar gained over 0.34% against the US Dollar on Tuesday, showing some resilience as news remained sparse. The AUD/USD pair was trading at 0.6983 amid mixed US economic data and ongoing conflicts in the Middle East.
AUD/USD demonstrates strength as Fed policy shifts and RBA tightening impact market outlook
US stock markets ended the day mixed, with the US Dollar losing ground compared to other currencies. The decline of the Dollar was fueled by dovish remarks from New York Fed President John Williams, who indicated that he anticipates only one rate hike in 2026 and none for the coming year. On the other hand, regional Fed Bank Presidents Susan Collins and Austan Goolsbee highlighted a robust labor market and rising inflation linked to AI developments, suggesting that additional tightening may be necessary.
US economic figures were mixed as well; Existing Home Sales saw a 1.5% month-over-month rise, reaching 3.99 million in September, contrasting with a downturn in August. Meanwhile, Automatic Data Processing (ADP) reported a decrease in the 4-week average Employment Change, down from 25.25K to 24.75K.
In Australia, there wasn’t much on the economic calendar. However, recent minutes from the Reserve Bank of Australia’s meeting hinted that the persistent high cost of living and potential further price increases could lead to future rate hikes.
Looking ahead, Australia will release jobs data on October 15, with expectations of a workforce increase of 20,000, a decline from the 39.5K added in August. The Unemployment Rate is anticipated to hold steady at 4.6%.
AUD/USD Price Forecast: Technical Analysis
As of the daily chart, AUD/USD stands at 0.6983, continuing its corrective phase below the key simple moving averages clustered around 0.7087, indicating a bearish sentiment in the short term. The price is above a support trend line that began at 0.6833, now positioned near 0.6914. The Relative Strength Index (14) is around 41, reflecting some downward pressure, though not excessively so, following a recent drop from the 0.72 level.
As for resistance, the initial hurdle lies at the rising trend-line close to 0.7077, followed by the 50/100/200-day SMA cluster around 0.7087. A stronger resistance level appears at 0.7198, while further up, broader resistance can be found near 0.7426 and then 0.8866/0.9790. Conversely, immediate support is indicated by the trend line around 0.6914, with the previous downward resistance level, which has now turned into a structural floor, around 0.6362. Should selling pressures intensify, this is where buyers might step in to defend the market’s broader base.
