AUD/USD was trading around 0.7110 at the time of writing on Wednesday, up 0.56% on the day, supported by a more favorable external backdrop and dovish tone from the Reserve Bank of Australia (RBA).
The Australian dollar (AUD) benefits from the release of China’s consumer price index (CPI) first, as China is Australia’s main trading partner. Chinese inflation rose 0.2% in January, up from 0.8% earlier. Although the figure fell short of market expectations, it signaled stability in disinflationary pressures and supported Asian-pegged currencies, including the Australian dollar.
On the domestic front, comments from RBA Deputy Governor Andrew Hauser provided additional support to the currency. He said on Tuesday that inflation remains very high and the institution is ready to do whatever is necessary to bring it back on target. The market now sees a high probability of a 25 basis point rate hike in the upcoming meetings, which would strengthen the relative appeal of the Australian dollar.
Housing credit data also confirms the resilience of household demand. Growth in first-home buyer loans and an increase in average loan size highlight the still-solid momentum in the housing market, a factor that could maintain price pressure.
On the US side, the employment report dampened optimism among US dollar (USD) sellers. Non-farm payrolls (NFP) data released by the Bureau of Labor Statistics showed an increase of 130,000 jobs in January, more than expected by 70,000, while the unemployment rate fell to 4.3%. Annual wage growth, measured by average hourly earnings, remained flat at 3.7%. These elements support the view that the Federal Reserve (Fed) is likely to keep rates within the current 3.50%-3.75% range in upcoming meetings.
However, the significant decline in previous data, particularly as part of the annual benchmark revision, highlights the more fragile underlying employment trend last year. This more nuanced reading limits support for the greenback and allows AUD/USD to maintain a short-term bullish bias.
Investors are now turning to upcoming Australian data, particularly consumer inflation expectations due on Thursday, to assess whether they confirm the Reserve Bank of Australia’s hawkish messaging.
Australian dollar price today
The table below shows the percentage changes of the Australian Dollar (AUD) against the major currencies listed today. The Australian dollar was strongest against the Swiss franc.
| USD | EUR | gbp | JPY | scurvy | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.25% | 0.02% | -0.61% | 0.27% | -0.57% | -0.02% | 0.48% | |
| EUR | -0.25% | -0.23% | -0.87% | 0.02% | -0.82% | -0.27% | 0.22% | |
| gbp | -0.02% | 0.23% | -0.63% | 0.25% | -0.59% | -0.05% | 0.45% | |
| JPY | 0.61% | 0.87% | 0.63% | 0.90% | 0.05% | 0.61% | 1.12% | |
| scurvy | -0.27% | -0.02% | -0.25% | -0.90% | -0.84% | -0.30% | 0.20% | |
| AUD | 0.57% | 0.82% | 0.59% | -0.05% | 0.84% | 0.55% | 1.05% | |
| NZD | 0.02% | 0.27% | 0.05% | -0.61% | 0.30% | -0.55% | 0.50% | |
| CHF | -0.48% | -0.22% | -0.45% | -1.12% | -0.20% | -1.05% | -0.50% |
The heat map shows the percentage change of major currencies against each other. The base currency is selected from the left column, while the quote currency is selected from the top row. For example, if you select Australian Dollar from the left column and move along the horizontal line to US Dollar, the percentage change displayed in the box will represent AUD (basis)/USD (quote).
