The Australian Dollar (AUD) gained over 0.34% against the US Dollar on Tuesday, reaching 0.6983, as market sentiment shifted due to diverging central bank policies and mixed US economic data. The AUD/USD pair advanced amid dovish comments from New York Fed President John Williams, who indicated only one rate increase in 2026 and none for the next year. This weakened the Dollar, which had previously hit 18-month highs.
Other Fed officials, including Susan Collins and Austan Goolsbee, argued for further tightening, citing a strong labor market and inflation driven by AI advancements. US economic data was mixed, with Existing Home Sales rising 1.5% month-over-month in September, while ADP jobs data showed a slight cooling in employment changes.
In Australia, the Reserve Bank of Australia (RBA) meeting minutes suggested potential rate hikes due to high living costs and rising prices. Upcoming economic data, including jobs figures on October 15, could influence the AUD further. The economy is expected to add 20,000 jobs, with the unemployment rate projected to remain at 4.6%.
Technically, the AUD/USD pair trades at 0.6983, with near-term resistance at 0.7087 and support at 0.6914. The Relative Strength Index indicates soft downside momentum after a retreat from the 0.72 area.