Australian Dollar holds losses following RBA Meeting Minutes
- Australian Dollar stays quiet after the RBA published the November Meeting Minutes on Tuesday.
- RBA Meeting Minutes could keep the cash rate unchanged for longer if incoming data proves stronger than expected.
- The US Dollar advanced due to fading Fed rate-cut likelihood.
The Australian Dollar (AUD) remains subdued against the US Dollar (USD) on Tuesday after registering losses in the previous session. The AUD/USD pair holds losses after the Reserve Bank of Australia (RBA) published the Minutes of its November monetary policy meeting.
The RBA Meeting Minutes showed that board members signalled a more balanced policy stance, adding that it could keep the cash rate unchanged for longer if incoming data proves stronger than expected.
However, the AUD may regain support as stronger domestic employment data reinforced expectations for a cautious stance from the Reserve Bank of Australia (RBA). As of the latest update on November 14, the ASX 30-Day Interbank Cash Rate Futures for December 2025 traded at 96.41, reflecting a 6% probability of a rate cut to 3.35% from 3.60% at the upcoming RBA Board meeting.
US Dollar receives support from diminishing Fed rate cut bets
- The US Dollar Index (DXY), which measures the value of the US Dollar against six major currencies, is edging lower and trading around 99.50 at the time of writing. Traders brace for a backlog of US data following the government's reopening.
- The CME FedWatch Tool suggests that financial markets are now pricing in a 43% chance that the Fed will cut its benchmark overnight borrowing rate by 25 basis points (bps) at its December meeting, down from 62% probability that markets priced a week ago.
- Kansas City Fed President Jeffery Schmid said on Friday that monetary policy should “lean against demand growth,” adding that current Fed policy is “modestly restrictive,” which he believes is appropriate.
- National Economic Council Director Kevin Hassett cautioned that some October data may “never materialize,” as several agencies were unable to gather information during the shutdown. Initial private-sector reports suggest a cooling labor market and wavering consumer confidence, with persistent concerns about inflation.
- US President Donald Trump signed the government funding bill on Thursday, marking the official end of the record 43-day government shutdown in US history.
- Federal Reserve Bank of St. Louis President Alberto Musalem said Thursday that rates are now closer to neutral than restrictive and the US economy remains resilient. Musalem stressed the need for caution, noting there is limited room to ease without risking overly accommodative policy.
- Minneapolis Fed President Neel Kashkari, speaking at the Opportunity & Inclusive Growth Institute’s Research Conference, said parts of the labor market appear strained and the economy is sending mixed signals. He added that inflation remains too high at 3%.
- Automatic Data Processing (ADP) released the US Employment Change on Tuesday, showing an average weekly job loss of 11,250 in the four weeks to October 25. Weaker-than-expected private US labor data increased the likelihood of the Federal Reserve (Fed) policy easing. Challenger, Gray & Christmas announced that US employers slashed 153,074 jobs in October, up from the 55,597 cuts announced in October 2024.
- Reuters reported on Sunday that US Treasury Secretary Scott Bessent said a rare earths agreement between the United States (US) and China will “hopefully” be finalized by Thanksgiving. He added that he is confident China will uphold its commitments following the recent meeting in Korea between the two leaders, President Trump and President Xi Jinping.
- The National Bureau of Statistics (NBS) showed Friday that China’s Retail Sales climbed 2.9% year-over-year (YoY) in October, against the 3.0% in September but exceeding the 2.7% expected. Meanwhile, Industrial Production increased 4.9% YoY in the same period, compared to the 5.5% forecast and 6.5% seen previously. The Fixed Asset Investment came in at -1.7% year-to-date (YTD) YoY in October, missing the expected -0.8% figure. The September reading was -0.5%.
- RBA Deputy Governor Andrew Hauser said last week, “Our best estimate is that monetary policy remains restrictive, though the committee continues to debate this.” Hauser added that if the policy is no longer mildly restrictive, it would have significant implications for future decisions.
- The Australian Bureau of Statistics (ABS) released the Unemployment Rate on Thursday, which declined to 4.3% in October from 4.5% in September, against the market expectations of 4.4%. Meanwhile, the Employment Change arrived at 42.2K in the same month from 12.8K (revised from 14.9K) prior, sharply exceeding the market forecast of 20K.
- Australia’s Full-Time Employment rose by 55.3K in October, from a rise of 6.5K in the previous reading (revised from 8.7K). Participation Rate steadies at 67%, while the Part-Time Employment decreased by 13.1K in October, versus an increase of 6.3K prior.
Australian Dollar moves below 0.6500 near lower rectangle boundary
The AUD/USD pair is trading around 0.6490 on Tuesday. The analysis of the daily chart shows the pair consolidating within a rectangular range, reflecting sideways movement. The price moves below the nine-day Exponential Moving Average (EMA), suggesting that momentum is weakening.
On the downside, the primary support lies at the lower boundary of the rectangle around 0.6470, followed by the five-month low of 0.6414, which was recorded on August 21.
The AUD/USD pair may test the primary barrier at nine-day EMA of 0.6514. A break above this level would improve the short-term price momentum and lead the pair to reach the rectangle’s upper boundary near 0.6630.
Australian Dollar Price Today
The table below shows the percentage change of Australian Dollar (AUD) against listed major currencies today. Australian Dollar was the weakest against the Swiss Franc.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.02% | 0.03% | -0.02% | 0.00% | 0.00% | -0.01% | -0.05% | |
| EUR | 0.02% | 0.05% | 0.00% | 0.02% | 0.03% | 0.00% | -0.03% | |
| GBP | -0.03% | -0.05% | -0.04% | -0.03% | -0.02% | -0.04% | -0.08% | |
| JPY | 0.02% | 0.00% | 0.04% | 0.02% | 0.02% | -0.01% | -0.04% | |
| CAD | -0.00% | -0.02% | 0.03% | -0.02% | 0.00% | -0.02% | -0.05% | |
| AUD | -0.01% | -0.03% | 0.02% | -0.02% | -0.01% | -0.03% | -0.06% | |
| NZD | 0.01% | -0.01% | 0.04% | 0.01% | 0.02% | 0.03% | -0.04% | |
| CHF | 0.05% | 0.03% | 0.08% | 0.04% | 0.05% | 0.06% | 0.04% |
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).
Australian Dollar FAQs
One of the most significant factors for the Australian Dollar (AUD) is the level of interest rates set by the Reserve Bank of Australia (RBA). Because Australia is a resource-rich country another key driver is the price of its biggest export, Iron Ore. The health of the Chinese economy, its largest trading partner, is a factor, as well as inflation in Australia, its growth rate and Trade Balance. Market sentiment – whether investors are taking on more risky assets (risk-on) or seeking safe-havens (risk-off) – is also a factor, with risk-on positive for AUD.
The Reserve Bank of Australia (RBA) influences the Australian Dollar (AUD) by setting the level of interest rates that Australian banks can lend to each other. This influences the level of interest rates in the economy as a whole. The main goal of the RBA is to maintain a stable inflation rate of 2-3% by adjusting interest rates up or down. Relatively high interest rates compared to other major central banks support the AUD, and the opposite for relatively low. The RBA can also use quantitative easing and tightening to influence credit conditions, with the former AUD-negative and the latter AUD-positive.
China is Australia’s largest trading partner so the health of the Chinese economy is a major influence on the value of the Australian Dollar (AUD). When the Chinese economy is doing well it purchases more raw materials, goods and services from Australia, lifting demand for the AUD, and pushing up its value. The opposite is the case when the Chinese economy is not growing as fast as expected. Positive or negative surprises in Chinese growth data, therefore, often have a direct impact on the Australian Dollar and its pairs.
Iron Ore is Australia’s largest export, accounting for $118 billion a year according to data from 2021, with China as its primary destination. The price of Iron Ore, therefore, can be a driver of the Australian Dollar. Generally, if the price of Iron Ore rises, AUD also goes up, as aggregate demand for the currency increases. The opposite is the case if the price of Iron Ore falls. Higher Iron Ore prices also tend to result in a greater likelihood of a positive Trade Balance for Australia, which is also positive of the AUD.
The Trade Balance, which is the difference between what a country earns from its exports versus what it pays for its imports, is another factor that can influence the value of the Australian Dollar. If Australia produces highly sought after exports, then its currency will gain in value purely from the surplus demand created from foreign buyers seeking to purchase its exports versus what it spends to purchase imports. Therefore, a positive net Trade Balance strengthens the AUD, with the opposite effect if the Trade Balance is negative.
Artigos Recomendados
