US dollar strength dominates
The US dollar remained the dominant force in currency markets overnight, with the USD index rising 0.4% and reaching new 18-month highs.
The greenback continued to draw support from rising US bond yields and ongoing concerns about Europe. France’s deepening fiscal challenges pushed French-German bond spreads to multi-year highs, adding further pressure to the euro.
Meanwhile, the benchmark US 10-year Treasury yield touched 5.34%, its highest level since 2002, reinforcing support for the US dollar.
The Aussie was the best-performing major currency against the US dollar,, rising 0.2%.
Elsewhere, EUR/USD fell 0.3%, GBP/USD lost 0.2%, and NZD/USD edged lower.
Aussie caught between slower growth and rising prices
Australia’s services PMI slowed to 51.9 in September from 53.2 in August, although the result was stronger than the preliminary estimate of 51.4.
Growth in new business eased and employment fell for the first time since May, while cost and selling-price pressures intensified. The composite PMI slipped to 51.3 from 52.7 as weakness in manufacturing continued.
The mixed result highlights the challenge facing the Reserve Bank of Australia, with growth slowing even as inflation pressures remain elevated.
For AUD/USD, initial resistance is located at the 21-day EMA of 0.7044, followed by the 100-day EMA at 0.7056. Support remains at 0.6900.
Meanwhile, AUD/EUR has climbed to a one-week high.
October 2026 chart showing commodity rebound lends support to the AUD
USD/SGD climbs to a two-month high
US Treasury Secretary Scott Bessent downplayed concerns about rising US bond yields, arguing they largely reflect global trends rather than domestic risks.
Bessent also highlighted the resilience of the US economy, pointing to solid consumer spending and wage growth despite ongoing geopolitical uncertainty.
USD/SGD has climbed to a two-month high and remains around 1.8% above its 28 January low of 1.2586.
Initial support is located at the 100-day EMA of 1.2789, followed by the 50-day EMA at 1.2771. On the upside, a break higher could bring 1.2850 into focus.
USD hits new highs
Table: seven-day rolling currency trends and trading ranges
Key global risk events
Calendar: 5 – 10 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.
