Tuesday, 07 October 2025
Jakarta
--:--
Tokyo
--:--
Hongkong
--:--
New York
--:--
AUD/USD Trades Around 0.6450 After Retreating From Five-Month High
Tuesday, 6 May 2025 09:35 WIB | AUD/USD |AUD/USD,

AUD/USD retreated from a five-month high of 0.6493 hit on Monday, dropping to around 0.6450 during the Asian session on Tuesday (06/05). The decline came as the US Dollar (USD) strengthened ahead of the Federal Reserve's (Fed) upcoming monetary policy decision on Wednesday.

While the Fed is widely expected to keep interest rates on hold, investors' focus remains on Chairman Jerome Powell's remarks, especially amid uncertainty over tariffs and growing pressure from President Donald Trump to cut rates.

Adding to the mix, Treasury Secretary Scott Bessent said on Monday that the US was "very close to some kind of deal," echoing Trump's comments over the weekend that suggested a trade agreement could be finalized soon. Trump confirmed negotiations were underway but ruled out talks with Chinese President Xi Jinping this week. Meanwhile, China's Commerce Ministry said last Friday that it was reviewing a US proposal to restart trade talks.

On the data front, the US ISM Services PMI rose to 51.6 in April, beating expectations of 50.6 and improving from 50.8 in March. The New Orders Index rose to 52.3 (from 50.4), while the Services Employment Index improved to 49 (from 46.2).

The AUD (Australia) was supported after Australian Prime Minister Anthony Albanese secured a second three-year term in the 2025 Federal Election, marking a significant improvement on Saturday's result. Albanese promised a "disciplined" government focused on cost-of-living relief, renewable energy, tax cuts, housing and healthcare.

The Westpac CEO noted that the "worst is over" in terms of consumer and business pressures, with demand for M&A financing stronger than expected. The bank expects a 25bps interest rate cut by the Reserve Bank of Australia (RBA) at its May 19–20 meeting.

Meanwhile, National Australia Bank (NAB) has raised its year-end AUD/USD forecast to 0.70, citing continued weakness in the USD market. NAB expects the pair to remain around 0.65 until mid-year, and gradually rise towards 0.67 by December. The bank attributes the outlook to the shift in interest rate differentials and anticipates the RBA to cut rates by 50 basis points in May. (Newsmaker23)

Source: FXstreet

RELATED NEWS
Inflation Rises Again, Australian Dollar Steps on the Gas! ...
Monday, 6 October 2025 10:29 WIB

The Australian dollar (AUD) strengthened against the US dollar (USD) this morning after the latest inflation data from the TD Securities–Melbourne Institute (TD-MI) showed a higher-than-expected surge...

Australian Dollar Weakens Slightly After Economic Data Release...
Friday, 3 October 2025 10:40 WIB

The Australian dollar (AUD) weakened slightly against the US dollar (USD) following the release of a number of economic data, but then stabilized on Friday. Recent data showed that business activity i...

AUD Awaits Catalyst: RBA vs. US Shutdown...
Friday, 3 October 2025 04:39 WIB

The Australian dollar (AUD) moved cautiously as markets weighed the effects of the US government shutdown, which delayed the release of important macro data and obscured visibility ahead of the Fed's ...

Australian Dollar steadies despite disappointing Trade Balance data...
Thursday, 2 October 2025 09:10 WIB

The Australian Dollar (AUD) maintains its position against the US Dollar (USD) on Thursday, following the release of Trade Balance data. Additionally, the AUD/USD pair moves little as traders adopt ca...

AUD/USD trades with caution...
Thursday, 2 October 2025 05:25 WIB

AUD/USD extends its bull run for the fourth day in a row on Wednesday, reclaiming the area above the key 0.6600 barrier, always amid the persistent offered stance in the US Dollar as investors gauge t...

LATEST NEWS
Nikkei Rises 1.1%, Led by Heavy-Industry, Real-Estate Stocks

Japanese stocks rise due to growing hopes that newly elected ruling-party leader Sanae Takaichi will take more aggressive fiscal steps to stimulate the economy. Heavy-industry and real-estate stocks lead gains. IHI rises 5.3% and Sumitomo Realty...

Gold Near $4,000: Momentum On

Gold strengthened early in the Asian session. This rise aligns with the upward trend in commodities, driven by macroeconomic uncertainty, a weakening dollar, and continued strong demand for hard assets. According to City Index and FOREX.com analyst...

Gold Rises Amid Macro Uncertainty, Other Tailwinds

Gold rises in the early Asian trade. There's a broad commodities uptrend, driven by macro uncertainty, a weaker dollar, and persistent demand for "hard" assets, says Fawad Razaqzada, market analyst at City Index and FOREX.com, in an email. "Gold's...

POPULAR NEWS
Asian Markets Soar: Yen Falls, Gold, and Stocks Soar!
Monday, 6 October 2025 08:00 WIB

Asian stocks surged to new highs, led by Japan's Nikkei 225, which surged more than 4% following the election of pro-stimulus lawmaker Sanae...

Negotiators Gather For Gaza Talks, Mediator Warns Deal May Be Slow
Monday, 6 October 2025 16:23 WIB

Hamas officials were in Egypt on Monday (October 6th) ahead of talks with Israel that the US hopes will lead to an end to the war in Gaza and the...

European Stocks Close Lower again
Monday, 6 October 2025 23:54 WIB

Euro Area Stock MarketEuropean stocks closed mostly lower on Monday as fresh political turmoil in France rekindled concerns of fiscal instability...

European Stocks Steady, French Stocks Weaken
Monday, 6 October 2025 14:33 WIB

European stocks moved steadily at the start of the week, while the French CAC 40 index fell 0.7%. This decline occurred after President Emmanuel...