AUD/USD faces intense selling pressure, hitting 0.6862, as the US Dollar strengthens on safe-haven demand and investors await critical US NFP data to gauge the Federal Reserve's December policy path.
AUD/USD hit a fresh seven-month low at 0.6862 on Friday amid intense selling pressure, as the safe-haven US Dollar outperforms during a global sell-off in AI infrastructure stocks. The RBA hiked to 4.85% but Governor Bullock signaled hesitation on further tightening, removing a policy support for the Aussie. NFP at 13:30 GMT today could reverse or extend the move.
The Aussie dropped to a seven-month low near 0.6862 because the US Dollar strengthened as investors sought safe havens during a global sell-off in AI infrastructure stocks, and the RBA signaled hesitation about further rate hikes despite raising rates to 4.85% this week.
The US Nonfarm Payrolls report for October, released at 13:30 GMT today, is the next major driver. A reading above the 65K consensus would likely be bullish for the US Dollar and further pressure AUD/USD, while a weak print could ease the selling.
The Dollar Index trades 0.42% higher near 102.00, reversing all losses since the US midterm elections after slumping to a monthly low near 101.00 on Wednesday. Safe-haven demand from the AI stock sell-off and tighter US financial conditions support the Greenback, though MUFG warns this could reduce the odds of a December Fed hike.
The Dollar Index rose 0.42% to near 102.00 as demand for safe-haven assets improved during a global sell-off in AI infrastructure stocks, and the index fully reversed the losses it suffered after Wednesday's midterm election results.
MUFG notes that if higher energy prices and record foreign demand for US assets keep reversing, or if tighter financial conditions lead the Fed to skip a December rate hike, downside risks for the US Dollar would increase.
The Australian Dollar hit a fresh seven-month low of 0.6862 against the US Dollar on Friday as investors flocked to safe-haven assets amid a global sell-off in AI infrastructure stocks. The US Dollar Index climbed 0.42% to 102.00, reversing post-midterm election losses. Markets are now focused on the US Nonfarm Payrolls report at 13:30 GMT, which could dictate the next move for the pair.
The Aussie dropped to a seven-month low near 0.6862 because the US Dollar strengthened as investors sought safe havens during a global sell-off in AI infrastructure stocks, and the RBA signaled hesitation about further rate hikes despite raising rates to 4.85% this week.
The US Nonfarm Payrolls report for October, released at 13:30 GMT today, is the next major driver. A reading above the 65K consensus would likely be bullish for the US Dollar and further pressure AUD/USD, while a weak print could ease the selling.