AUD/USD edged lower to around 0.6860 in early Asian trade, with firmer US data underpinning the Dollar and markets awaiting China’s CPI release. The US Bureau of Labor Statistics reported Nonfarm Payrolls rising by 165,000 in October, following a 60,000 gain in September after a revision from 29,000, and beating a 65,000 consensus. The Unemployment Rate eased to 4.1% from 4.2%, while pricing for a further quarter-point move in December lifted to 79.6% on CME FedWatch, with the tool implying only one additional increase beyond that.
RBA Rate Hike and Australian Dollar Movements
In Australia, the Reserve Bank of Australia lifted the Official Cash Rate by 25 bps to 4.85% from 4.60%, the highest since 2008, and said inflation remains elevated and is expected to stay that way through much of 2027. AUD/USD traded in a 0.6862–0.6954 range, with levels cited at support 0.6865 and resistance 0.7080, while broader FX moves were linked to equity weakness affecting AUD, SEK and NZD, and leaving KRW and MXN among the weaker EM currencies. Separately, Fed communication metrics showed an FXS Speechtracker score of 8/10 versus a 6.4/10 baseline, and the FXS Fed Sentiment Index up 0.95 to 143.10; technically, RSI (14) was near 33, with reference points at 0.6875, 0.6985, 0.7025 and 0.7090.
