AUD/USD jumps to near 0.6560 as US Dollar underperforms across the board
- AUD/USD refreshes two-week high around 0.6560 as the US Dollar faces a sharp selling pressure.
- Traders raise Fed’s interest rate cut expectations after the release of the US CPI report for July.
- Investors await Aussie employment data, which will be released on Thursday.
The AUD/USD pair posts a fresh two-week high around 0.6560 during the European trading session on Wednesday. The Aussie pair strengthens as the US Dollar (USD) underperforms its peers, following a significant increase in market expectations supporting interest rate cuts by the Federal Reserve (Fed) for the September policy meeting.
During the press time, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, slumps to near 97.60.
US Dollar PRICE Today
The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the weakest against the New Zealand Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.41% | -0.53% | -0.34% | -0.10% | -0.46% | -0.61% | -0.42% | |
| EUR | 0.41% | -0.06% | 0.03% | 0.30% | -0.03% | -0.21% | -0.02% | |
| GBP | 0.53% | 0.06% | 0.16% | 0.37% | 0.02% | -0.05% | 0.07% | |
| JPY | 0.34% | -0.03% | -0.16% | 0.24% | -0.13% | -0.27% | -0.10% | |
| CAD | 0.10% | -0.30% | -0.37% | -0.24% | -0.38% | -0.47% | -0.30% | |
| AUD | 0.46% | 0.03% | -0.02% | 0.13% | 0.38% | -0.18% | 0.03% | |
| NZD | 0.61% | 0.21% | 0.05% | 0.27% | 0.47% | 0.18% | 0.22% | |
| CHF | 0.42% | 0.02% | -0.07% | 0.10% | 0.30% | -0.03% | -0.22% |
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 US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
On Tuesday, traders raised Fed’s interest rate cut bets after the release of the United States (US) Consumer Price Index (CPI) report for July, which didn’t show any notable sign of the impact of tariff on prices. However, price pressures grew mostly in-line with expectations, and the core CPI – which excludes volatile items, grew at a faster pace of 3.1% on an annual basis.
According to the CME FedWatch tool, the probability of the fed to cut interest rates in the September meeting has increased to 94% from almost 86% recorded on Monday.
Meanwhile, the Australian Dollar (AUD) trades firmly ahead of the employment data for July, which will be published on Thursday. The employment report is expected to show that the economy created fresh 25K jobs, significantly higher than 2K in June. The Unemployment Rate is seen falling to 4.2% from the prior reading of 4.3%.
Economic Indicator
Unemployment Rate s.a.
The Unemployment Rate, released by the Australian Bureau of Statistics, is the number of unemployed workers divided by the total civilian labor force, expressed as a percentage. If the rate increases, it indicates a lack of expansion within the Australian labor market and a weakness within the Australian economy. A decrease in the figure is seen as bullish for the Australian Dollar (AUD), while an increase is seen as bearish.
Read more.Next release: Thu Aug 14, 2025 01:30
Frequency: Monthly
Consensus: 4.2%
Previous: 4.3%
Source: Australian Bureau of Statistics
The Australian Bureau of Statistics (ABS) publishes an overview of trends in the Australian labour market, with unemployment rate a closely watched indicator. It is released about 15 days after the month end and throws light on the overall economic conditions, as it is highly correlated to consumer spending and inflation. Despite the lagging nature of the indicator, it affects the Reserve Bank of Australia’s (RBA) interest rate decisions, in turn, moving the Australian dollar. Upbeat figure tends to be AUD positive.
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