Insights 
VT 
Australia’s private sector credit growth in September increased to 7.3% year-over-year, up from 7.2%. This change may affect Australia’s economy as businesses and consumers adjust their borrowing and spending.
The USD/INR has risen as the US dollar approaches a three-month high, influenced by lowered expectations of a dovish Fed and easing US-China trade tensions. Meanwhile, the Australian dollar has fallen while the US dollar stabilises amidst Federal Reserve policy uncertainties.
EUR/USD Trading
The EUR/USD is trading cautiously near a two-week low of around 1.1570, while the US Dollar Index remains around 99.50 amid Fed policy uncertainties. Gold remains pressured due to fewer expectations for December Fed rate cuts and ongoing trade optimism.
The GBP/USD pair has inched higher, trading at around 1.3160 with increased expectations of Fed rate cuts. Meme coins like Dogecoin and Shiba Inu face risk of breaking monthly support levels due to losses in the crypto market. Improved US-China diplomatic relations contribute to a more stable trade environment. For further updates and analysis, FXStreet provides the latest market insights.
The rise in Australia’s private sector credit to 7.3% normally suggests a stronger Australian dollar is on the horizon. However, the currency is dipping because overwhelming US dollar strength is the market’s main focus right now. This tells us that local economic news is taking a backseat to global monetary policy.
We see the US Dollar Index holding firm around 99.50 because inflation remains persistent, with recent Q3 2025 data showing Core CPI at 3.2%, still well above the Federal Reserve’s target. This has forced markets to reduce bets on any near-term rate cuts, a major policy shift from the dovish outlook we saw back in late 2024. Consequently, traders are positioning for a higher-for-longer interest rate environment in the United States.
Considerations for Traders
Given this divergence, traders should consider strategies that benefit from a declining AUD/USD, even with Australia’s solid domestic data. Options strategies, such as buying puts on the Australian dollar, could be a way to profit from the dominant strong-US-dollar trend. This allows a position to be taken on further downside while managing risk.
The outlook for firm US interest rates is also putting significant pressure on gold. With US 10-year Treasury yields pushing back towards 4.6% in October 2025, the opportunity cost of holding non-yielding assets like gold is increasing. This is reminiscent of the pressure gold faced during parts of 2023 when the market was forced to price in the Fed’s aggressive hiking cycle.
We also note that speculative assets are showing signs of weakness, with meme coins like Dogecoin and Shiba Inu struggling at key support levels. This suggests a broader reduction in risk appetite, as capital moves away from volatile assets and toward cash or dollar-denominated securities that benefit from higher yields. This environment favors fundamental analysis over speculative momentum.
