AUD/USD Price Forecast: Consolidates above 20-day EMA as focus shifts to Fed’s policy
- AUD/USD ticks up to near 0.7020 as the Australian currency outperforms.
- Investors keenly await the Australian Q3 CPI and the Fed’s policy announcement on Wednesday.
- The Fed is expected to leave interest rates steady in the 3.75%-4.00% range.
The Australian Dollar (AUD) marginally higher at around 0.7020 against the US Dollar (USD) during the European trading session on Tuesday. The Aussie pair edges up as the Australian Dollar outperforms, except the New Zealand Dollar (NZD).
Australian Dollar Price Today
The table below shows the percentage change of Australian Dollar (AUD) against listed major currencies today. Australian Dollar was the strongest against the Euro.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.19% | 0.17% | 0.16% | 0.04% | -0.09% | -0.17% | 0.08% | |
| EUR | -0.19% | -0.01% | 0.02% | -0.14% | -0.27% | -0.37% | -0.09% | |
| GBP | -0.17% | 0.01% | 0.02% | -0.12% | -0.26% | -0.33% | -0.07% | |
| JPY | -0.16% | -0.02% | -0.02% | -0.13% | -0.27% | -0.35% | -0.10% | |
| CAD | -0.04% | 0.14% | 0.12% | 0.13% | -0.14% | -0.22% | 0.05% | |
| AUD | 0.09% | 0.27% | 0.26% | 0.27% | 0.14% | -0.08% | 0.19% | |
| NZD | 0.17% | 0.37% | 0.33% | 0.35% | 0.22% | 0.08% | 0.28% | |
| CHF | -0.08% | 0.09% | 0.07% | 0.10% | -0.05% | -0.19% | -0.28% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Australian Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent AUD (base)/USD (quote).
However, the Aussie pair is expected to remain flat as financial markets await the Federal Reserve’s (Fed) monetary policy announcement on Wednesday.
Fed seen on hold as RBC flags gradual tightening into 2027
Analysts at Royal Bank of Canada expect the Fed to keep policy steady at this week’s meeting, with the “Federal Reserve … expected to hold the fed funds target range unchanged on Wednesday after hiking for the first time since 2023 in September.” While the September move marked a resumption of tightening, RBC notes that “FOMC members continue to signal that more hikes will follow, but comments after the last decision suggest a gradual approach.” In terms of the projected path, the bank reiterates that “we expect two 25-basis-point rate hikes ahead before the end of Q1 2027.”
This week, investors will also pay close attention to the Q3 Gross Domestic Product (GDP) and Personal Consumption Expenditure (PCE) Price Index data for September on Thursday, and Q3 earnings of hyperscalers, including Amazon, Alphabet and Microsoft.
On the Aussie front, investors await the Q3 Consumer Price Index (CPI) data, which is scheduled for Wednesday. Inflationary pressures in Australia are expected to have grown at a faster pace of 1.3% against the previous reading of 0.6%.
AUD/USD Technical Analysis
In the daily chart, AUD/USD trades at 0.7021. The pair holds a mildly bullish near-term bias as price stays marginally above the 9-period exponential moving average (EMA) at 0.7006, suggesting a nascent recovery after the recent pullback. The Relative Strength Index (RSI) at 51.5 sits just above neutral, hinting at modest positive momentum without entering overbought territory.
On the downside, the 9-period EMA at 0.7006 is the immediate support zone. Looking up, the October 26 high at 0.7040 is the key hurdle. The pair would enter a fresh upside leg if it manages to break above 0.7040.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
Economic Indicator
Quarterly Consumer Price Index (QoQ)
The Consumer Price Index (CPI), released by the Australian Bureau of Statistics on a quarterly basis, measures the changes in the price of a fixed basket of goods and services acquired by household consumers. The quarterly CPI data series are calculated as the average of the three relevant monthly CPIs. The QoQ reading compares prices in the reference quarter to the previous quarter. A high reading is seen as bullish for the Australian Dollar (AUD), while a low reading is seen as bearish.
Read more.Next release: Wed Oct 28, 2026 00:30
Frequency: Quarterly
Consensus: 1.3%
Previous: 0.6%
Source: Australian Bureau of Statistics
The quarterly Consumer Price Index (CPI) published by the Australian Bureau of Statistics (ABS) has a significant impact on the market and the AUD valuation. The gauge is closely watched by the Reserve Bank of Australia (RBA), in order to achieve its inflation mandate, which has major monetary policy implications. Rising consumer prices tend to be AUD bullish, as the RBA could hike interest rates to maintain its inflation target. The data is released nearly 25 days after the quarter ends.
Recommended Articles
