The Australian Dollar strengthened against its US counterpart on Wednesday following softer American labor data and a dip in the Greenback amid foreign exchange intervention speculation. Market sentiment remained broadly constructive, supported by a positive close on Wall Street.
AUD/USD Strengthens on Diverging US-Australia Economic Momentum
AUD/USD was trading at 0.7169, having touched an intraday low of 0.7121, representing a gain of 0.35%. Concurrently, the US Dollar Index (DXY) declined 0.08% to 99.57.
US data indicated a deceleration in private-sector hiring, as the ADP National Employment Change for August fell from 46K to 38K, missing expectations of 47K.
Geopolitical tensions also dominated the news cycle, with US President Donald Trump warning that a “renewed campaign against Iran won’t continue for too long,” hinting at potential further military actions.
These developments exerted upward pressure on energy prices and global bond yields. Consequently, money markets continued to price in a 25-basis-point rate hike by the Federal Reserve at the September 16 meeting, with probabilities standing at 67.50% according to Prime Terminal.
Meanwhile, Federal Reserve officials remain divided on whether current policy is restrictive. New York Fed President John Williams noted that inflation data has been “slowly” improving, though he acknowledged policy remains appropriate to curb high prices. Market attention will shift to Governor Christopher Waller on Thursday, a move that could reflect the “hawkish” stance demonstrated by Fed Chair Warsh last week.
In Australia, Q2 2026 GDP grew by 0.4% QoQ and 2.1% YoY, both beating expectations, although the year-over-year figure decelerated from 2.5%. The data is unlikely to shift the Reserve Bank of Australia’s focus, which remains squarely on combating inflation.
Looking ahead, the Australian economic calendar will feature S&P Global Services and Composite PMIs, along with Trade Balance figures.
AUD/USD Price Forecast: Technical outlook
On the daily chart, AUD/USD is trading at 0.7169 and maintains a bullish near-term bias, holding above a cluster of simple moving averages around 0.7026 and an ascending trend-line support zone near 0.7002–0.6897. The 14-period Relative Strength Index (RSI) sits near 62, leaning into positive territory and indicating that buyers retain the upper hand as the pair trades well above the previously broken downward trend line, which now supports the advance.
Upside resistance emerges immediately at the horizontal barrier near 0.7198, with the next bullish target aligned with the projected ascending trend structure around 0.7339. Conversely, initial support is found at the simple moving average region near 0.7026, followed by trend-line cushions at 0.7002 and 0.6897; a break below these levels would expose the deeper structural floor implied by the prior resistance line toward 0.6389.
Australian Dollar Price Today
The table below outlines the daily percentage change of the Australian Dollar (AUD) against major currencies. The AUD registered its strongest gains against the New Zealand Dollar.
USDEURGBPJPYCADAUDNZDCHFUSD0.04%0.23%-0.90%-0.37%-0.33%0.73%0.15%EUR-0.04%0.19%-0.92%-0.42%-0.37%0.66%0.11%GBP-0.23%-0.19%-1.11%-0.59%-0.56%0.44%-0.08%JPY0.90%0.92%1.11%0.50%0.56%1.59%1.04%CAD0.37%0.42%0.59%-0.50%0.05%1.08%0.54%AUD0.33%0.37%0.56%-0.56%-0.05%1.03%0.50%NZD-0.73%-0.66%-0.44%-1.59%-1.08%-1.03%-0.53%CHF-0.15%-0.11%0.08%-1.04%-0.54%-0.50%0.53%
The heat map displays percentage changes of major currencies against one another. The base currency is selected from the left column, and the quote currency from the top row. For instance, selecting the Australian Dollar from the left column and moving horizontally to the US Dollar yields the percentage change for AUD/USD.
