Australian Dollar trades near monthly high, above 0.7000 as hawkish RBA offsets USD uptick

• AUD/USD attracts buyers for the fourth day amid hawkish comments from RBA officials.

• China’s upbeat Q3 GDP print published on Monday lends additional support to the AUD.

• Oil-driven inflation fears reinforce Fed hike bets, which support the USD and cap gains.

The AUD/USD pair trades with a positive bias for the fourth straight day, holding steady above the 0.7000 psychological mark during the Asian session on Wednesday and flirting with the monthly high it touched the previous day.

The Australian Dollar (AUD) continues to be underpinned by hawkish signals from Reserve Bank of Australia (RBA) officials, keeping rate-hike expectations alive ahead of the November 3 policy meeting. In fact, RBA Assistant Governor Christopher Kent said on Monday that there are reasonable indications that neutral interest rates are increasing both domestically and globally, while Deputy Governor Andrew Hauser warned earlier today that Q3 trimmed-mean inflation may run hotter than expected.

Adding to this, China's upbeat Q3 GDP print, showing that the economy grew by 4.5% year-over-year during the July-September period, acts as a tailwind for the Aussie. Meanwhile, the US Dollar (USD) builds on the overnight modest bounce from a nearly three-week low as oil-driven inflation fears underpin prospects for further tightening by the Federal Reserve (Fed). In fact, traders are currently pricing in over a 90% chance of a Fed rate hike in December, supporting the buck and capping the AUD/USD pair.

Traders, however, might refrain from placing aggressive bullish bets on the safe-haven Greenback amid renewed hopes for US-Iran peace talks. In fact, media reports said that Qatar and Pakistan had offered a "middle ground" plan to the U.S. and Iran that met the demands of both sides. This, in turn, warrants some caution before confirming that the recent USD corrective decline from the highest level since April 2025 has run its course, as the focus remains on further developments surrounding the Middle East crisis.

AUD/USD daily chart

Technical Analysis

The AUD/USD pair confirms a breakout through a short-term trading range and now eyes a move beyond the 38.2% Fibonacci retracement barrier at 0.7024. Any further move up, however, might confront a hurdle near the 200-day Simple Moving Average (SMA) at 0.7048. This is followed by the mid-range 50.0% retracement at 0.7064, which keeps the near-term bias bearish and suggests that spot prices might struggle to reclaim the pivot area within the broader corrective structure.

On the downside, initial support emerges at the 23.6% retracement at 0.6974, ahead of the structural floor anchored near 0.6893, where buyers would be expected to defend the broader range.

(The technical analysis of this story was written with the help of an AI tool. Know more.)