Greenback gains as US shares extend losses
The Australian dollar was lower overnight as international markets reacted to yesterday’s Reserve Bank of Australia decision while the US dollar outperformed.
The US dollar was boosted by safe-haven flows as US share markets extended recent losses with the S&P 500 down 1.2% while the tech-focused Nasdaq lost 2.0%.
The Australian dollar, while lower, held up relatively well as most other currencies saw larger losses versus the greenback. The AUD/USD fell 0.7%.
The British pound was hit after a poorly received speech from Chancellor of the Exchequer Rachel Reeves. The GBP/USD fell 0.9%.
The NZD/USD was also lower with the pair down 1.0%. Yesterday, the RBNZ warned financial stability risks have grown over the last six months.
In Asia, the USD/JPY was lower, but the greenback was stronger in other markets with the USD/CNH up 0.1% and USD/SGD up 0.2%.
Aussie slips as RBA holds
Australia’s central bank held interest rates at 3.60%, sticking to its cautious stance after inflation showed signs of heating up. Core inflation rose to 3% in September—hitting the top of the Reserve Bank’s target range and accelerating for the first time since 2022. At the same time, unemployment jumped to 4.5%, the highest since November 2021.
The RBA has cut rates three times this year and stayed on pause since August. The Board said there may be “a little more” inflation pressure than expected and signalled it wants more evidence that prices are cooling before making any moves.
AUD/USD fell to a two-week low after the decision.
The next key resistance lies at 21-day EMA of 0.6541, followed by key psychological resistance of 0.6600.
JPY climbs from nine-month lows on growth hopes
Japanese Prime Minister Sanae Takaichi said Tuesday her government will unveil a growth-focused economic strategy next summer aimed at boosting tax revenue without raising rates. She emphasized expanding the economy’s capacity and strengthening its supply chains. Her comments reinforce a pro-growth stance and suggest fiscal continuity. That could ease concerns over future tax hikes and lift investor confidence in Japanese stocks—especially infrastructure—but it puts pressure on the yen.
Later in the day, Finance Minister Satsuki Katayama said the government was watching currency moves closely, calling recent swings sharp and one-sided. She also pushed for price relief measures with immediate impact. Her remarks helped the yen recover slightly against the dollar. The USD/JPY pair turned from a nine-month high overnight. Key support levels sit at 21-day EMA of 152.17 and 50-day EMA of 150.43, where dollar buyers may step in
USD boosted by safe haven flows
Table: seven-day rolling currency trends and trading ranges
Key global risk events
Calendar: 3 – 7 November
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*The FX rates published are provided by Convera’s Market Insights team for research purposes only. The rates have a unique source and may not align to any live exchange rates quoted on other sites. They are not an indication of actual buy/sell rates, or a financial offer.
