AUD/USD jumps to near 0.6570 as US Dollar underperforms, RBA policy in focus
- AUD/USD climbs to near 0.6570 amid weakness in the US Dollar as the US government shutdown deadline looms.
- Investors await the US labor market data for fresh cues on the Fed’s monetary policy outlook.
- The RBA is expected to hold interest rates steady at 3.6% on Tuesday.
The AUD/USD pair trades 0.35% higher around 0.6570 during the European trading session on Monday. The Aussie pair trades firmly as the US Dollar (USD) underperforms its peers amid fears that the United States (US) won’t be able to avert a shutdown after the fiscal year ending September 30.
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 Japanese Yen.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.19% | -0.39% | -0.62% | -0.12% | -0.34% | -0.12% | -0.29% | |
| EUR | 0.19% | -0.20% | -0.61% | 0.07% | -0.14% | 0.07% | -0.11% | |
| GBP | 0.39% | 0.20% | -0.30% | 0.27% | 0.00% | 0.27% | 0.09% | |
| JPY | 0.62% | 0.61% | 0.30% | 0.55% | 0.33% | 0.40% | 0.39% | |
| CAD | 0.12% | -0.07% | -0.27% | -0.55% | -0.18% | 0.00% | -0.18% | |
| AUD | 0.34% | 0.14% | -0.00% | -0.33% | 0.18% | 0.21% | 0.03% | |
| NZD | 0.12% | -0.07% | -0.27% | -0.40% | -0.00% | -0.21% | -0.03% | |
| CHF | 0.29% | 0.11% | -0.09% | -0.39% | 0.18% | -0.03% | 0.03% |
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).
At the time of writing, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, slumps to near 97.85.
The Republican-controlled Senate is struggling to get the short-term funding bill passed, as Democrats want Congress to roll back cuts in healthcare programs announced this year.
Apart from US government shutdown risks, investors have also turned cautious ahead of the US Nonfarm Payrolls (NFP) data for September, which will be announced later this week. Investors will closely monitor the official job data to get cues on the current status of the labor market. The impact of the NFP data will be significant on speculation over the US interest rate outlook.
The Fed reduced interest rates by 25 basis points (bps) to 4.00%-4.25% in the policy meeting this month, citing deteriorating labor market conditions, even as inflation remains well above the central bank’s target of 2%.
Meanwhile, the Australian Dollar (AUD) outperforms its peers, except the Japanese Yen (JPY), ahead of the Reserve Bank of Australia’s (RBA) monetary policy announcement on Tuesday. The RBA is expected to hold its Official Cash Rate (OCR) steady at 3.6%, as inflationary pressures in the Australian economy are proving to be persistent.
Economic Indicator
RBA Interest Rate Decision
The Reserve Bank of Australia (RBA) announces its interest rate decision at the end of its eight scheduled meetings per year. If the RBA is hawkish about the inflationary outlook of the economy and raises interest rates it is usually bullish for the Australian Dollar (AUD). Likewise, if the RBA has a dovish view on the Australian economy and keeps interest rates unchanged, or cuts them, it is seen as bearish for AUD.
Read more.Next release: Tue Sep 30, 2025 04:30
Frequency: Irregular
Consensus: 3.6%
Previous: 3.6%
Source: Reserve Bank of Australia
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