Australian Dollar struggles near April lows vs firmer USD as bears await 0.6900 break
- AUD/USD attracts sellers for the third straight day and reacts little to Australia’s mixed CPI data.
- A tech-driven selloff in global equity markets and the Fed’s hawkish tilt lend support to the USD.
- Conflicting messages on Iran’s nuclear issues further benefit the buck and weigh on spot prices.
The AUD/USD pair turns lower for the third straight day following a modest Asian session uptick to the 0.6920-0.6925 area and drops to a fresh low since April 7 on Wednesday. Bears now await a sustained breakdown and acceptance below the 0.6900 mark before positioning for an extension of the recent pullback from a four-year peak.
Following a rather muted reaction to mixed Australian consumer inflation figures, the AUD/USD pair attracts fresh sellers and seems vulnerable to slide further in the face of a broadly firmer US Dollar (USD). The Australian Bureau of Statistics (ABS) reported that the headline Consumer Price Index (CPI) fell 0.7% in May, with the annual rate easing from 4.2% to 4.0%, or the slowest pace in three months. However, the trimmed mean CPI rose 0.4% in May and lifted the annual core rate to 3.6%.
The Reserve Bank of Australia (RBA) reiterated earlier this month that it will not hesitate to tighten further if inflation remains above its target band of 2% to 3%. Moreover, traders are still pricing in a roughly 15 basis point (bps) of additional tightening for the remainder of the year. This, however, does little to provide any meaningful boost to the Australian Dollar (AUD) as a tech-driven global equity selloff and the US Federal Reserve's (Fed) hawkish outlook continues to boost the safe-haven USD.
In fact, nine of the Fed's 19 committee members believed that they would need to raise the policy rate this year to combat sticky inflation, prompting investors to ramp up their bets for at least one rate hike, either in September or December. Adding to this, mixed US-Iran messages on Tehran's nuclear program keep geopolitical risk premiums in play and lift the USD to a fresh high since May 2025. This, in turn, exerts pressure on the AUD/USD pair and backs the case for a further depreciating move.
Australian Dollar Price This week
The table below shows the percentage change of Australian Dollar (AUD) against listed major currencies this week. Australian Dollar was the strongest against the New Zealand Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.90% | -0.01% | 0.13% | 0.34% | 1.44% | 1.40% | 0.41% | |
| EUR | -0.90% | -0.90% | -0.70% | -0.51% | 0.59% | 0.46% | -0.47% | |
| GBP | 0.00% | 0.90% | -0.04% | 0.34% | 1.43% | 1.36% | 0.40% | |
| JPY | -0.13% | 0.70% | 0.04% | 0.15% | 1.28% | 1.23% | 0.21% | |
| CAD | -0.34% | 0.51% | -0.34% | -0.15% | 1.11% | 1.08% | 0.05% | |
| AUD | -1.44% | -0.59% | -1.43% | -1.28% | -1.11% | -0.07% | -1.01% | |
| NZD | -1.40% | -0.46% | -1.36% | -1.23% | -1.08% | 0.07% | -0.95% | |
| CHF | -0.41% | 0.47% | -0.40% | -0.21% | -0.05% | 1.01% | 0.95% |
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).
Nothing in this material constitutes investment advice, personal recommendation, investment research, an offer, or a solicitation to buy or sell any financial instrument. The content has been prepared without consideration of your individual investment objectives, financial situation, or needs, and should not be treated as such.
Past performance is not a reliable indicator of future performance and/or results. Forward-looking scenarios or forecasts are not a guarantee of future performance. Actual results may differ materially from those anticipated.
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