US dollar extends gentle decline from 18-month highs
The US dollar was lower for the fourth time in five sessions as US bond yields eased from recent highs, while US shares were mostly stronger.
Notably, the tech-focused Nasdaq continued its recovery after its weakest week since April 2025, gaining 1.1% overnight. The broader S&P 500 rose 0.6%.
Currency markets were relatively muted, with the Aussie and kiwi making the most of the weaker US dollar.
EUR/USD was flat, while GBP/USD lost 0.1%. USD/CAD fell 0.1%.
Aussie, kiwi gain as inflation remains in focus
The Aussie and kiwi were the strongest-performing major currencies on Wednesday.
AUD/USD gained 0.4% after Reserve Bank of Australia (RBA) Deputy Governor Andrew Hauser warned that Australia’s inflation outlook has become “materially worse”.
With the Melbourne Cup Day rate decision less than two weeks away, financial markets see a 57% chance of another rate hike.
NZD/USD gained 0.3% ahead of today’s September-quarter CPI report.
Asian currencies moderately higher
The US dollar also eased in Asia, although the greenback’s losses were more contained.
USD/JPY was moderately lower. The pair has been relatively contained this week after retreating from a one-month high of 159.10.
USD/CNH was flat, while USD/SGD fell 0.1% ahead of Friday’s Singapore inflation report.
Aussie back above 0.7000
Table: seven-day rolling currency trends and trading ranges
Key global risk events
Calendar: 19 – 24 October
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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.
