The Australian Dollar (AUD) gained over 0.34% against the US Dollar (USD) on Tuesday, trading at 0.6983, as dovish comments from New York Federal Reserve President John Williams influenced market sentiment [1]. Williams indicated that he expects only one rate increase in 2026 and none for the next year, which weighed on the US Dollar after it had reached 18-month highs [1]. In contrast, other Federal Reserve officials, including Susan Collins and Austan Goolsbee, highlighted a solid labor market and inflationary pressures driven by AI, suggesting that further tightening may be necessary [1].
US economic data released on Tuesday was mixed. Existing Home Sales rose 1.5% month-over-month to 3.99 million in September, reversing the previous month's contraction. Meanwhile, ADP jobs data showed the 4-week average Employment Change cooled slightly from 25.25K to 24.75K [1].
In Australia, there were no major economic releases, but the latest Reserve Bank of Australia (RBA) meeting minutes indicated that persistent high living costs and further price increases could prompt additional rate hikes [1]. Looking ahead, Australian jobs data is scheduled for release on October 15, with expectations for a 20,000 increase in employment (down from 39,500 in August) and the unemployment rate projected to remain at 4.6% [1].
From a technical perspective, AUD/USD remains in a corrective phase below clustered simple moving averages around 0.7087, maintaining a near-term bearish bias. Immediate support is seen at 0.6914, with resistance levels at 0.7077 and 0.7198 [1].
CONCLUSION
The Australian Dollar strengthened against the US Dollar following dovish signals from the Federal Reserve, while mixed US data and expectations of potential RBA tightening also influenced sentiment. Market participants are now focused on upcoming Australian jobs data for further direction.