AUD/USD is down for a fourth week, pressured by strong US data and a firm Federal Reserve outlook. With the US election and Australia’s CPI data ahead, the pair remains at risk of further declines
AUD/USD closed lower last week at 0.6604 (-1.52%), marking its fourth consecutive week of declines. As month-end approaches, AUD/USD is set for a decline of approximately 4.8% in October, its worst monthly performance since September 2022. This places AUD/USD as the third-worst-performing currency for October
US economic data and USD strength
US economic data following the release of September’s non-farm payrolls has been stronger than expected, including the S&P Global Composite purchasing managers’ index (PMI), initial jobless claims, and durable goods excluding transport. This string of robust economic indicators has prompted traders to revise their outlooks, now anticipating fewer aggressive Federal Reserve (Fed) interest rate cuts by year-end, thereby strengthening the US dollar (USD).
