- AUD/USD gains to near 0.6560 as the US Dollar continues to outperform its peers.
- The US government enters in its second week of shutdown.
- Investors await FOMC minutes and Australia’s consumer inflation expectations data.
The AUD/USD pair trades 0.2% lower to near 0.6560 during the European trading session on Wednesday. The Aussie pair extends its Tuesday’s downside move as the US Dollar (USD) continues to outperforms its peers, following political developments in Japan and France.
During European trading hours, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, posts a fresh two-month high near 99.00.
US Dollar Price This week
The table below shows the percentage change of US Dollar (USD) against listed major currencies this week. US Dollar was the strongest against the Japanese Yen.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.83% | 0.21% | 2.00% | -0.02% | 0.28% | 1.01% | 0.59% | |
| EUR | -0.83% | -0.72% | 1.08% | -0.88% | -0.58% | 0.14% | -0.28% | |
| GBP | -0.21% | 0.72% | 1.90% | -0.16% | 0.14% | 0.86% | 0.44% | |
| JPY | -2.00% | -1.08% | -1.90% | -1.93% | -1.74% | -1.04% | -1.43% | |
| CAD | 0.02% | 0.88% | 0.16% | 1.93% | 0.34% | 1.03% | 0.61% | |
| AUD | -0.28% | 0.58% | -0.14% | 1.74% | -0.34% | 0.72% | 0.31% | |
| NZD | -1.01% | -0.14% | -0.86% | 1.04% | -1.03% | -0.72% | -0.42% | |
| CHF | -0.59% | 0.28% | -0.44% | 1.43% | -0.61% | -0.31% | 0.42% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
However, the upside in the US Dollar appears to be limited as the US government has entered in its second week of shutdown.
Meanwhile, investors await the Federal Open Market Committee (FOMC) minutes of the September policy meeting, which will be published at 18:00 GMT. Financial market participants will pay close attention to FOMC minutes to get fresh cues on the monetary policy outlook.
In September, the Fed reduced interest rates by 25 basis points (bps) to 4.00%-4.25% and signaled two more in the remainder of the year. The CME FedWatch tool also shows that traders see an 82% chance that the Fed will cut interest rates by 25 bps in each of its two policy meetings remaining this year.
In Australia, investors await one-year forward Consumer Inflation Expectations data for October, which will be published on Thursday. The inflation expectations data will influence market expectations for the Reserve Bank of Australia’s (RBA) monetary policy outlook. In September, 12-months inflation expectations rose at a faster pace to 4.7%.
Economic Indicator
FOMC Minutes
FOMC stands for The Federal Open Market Committee that organizes 8 meetings in a year and reviews economic and financial conditions, determines the appropriate stance of monetary policy and assesses the risks to its long-run goals of price stability and sustainable economic growth. FOMC Minutes are released by the Board of Governors of the Federal Reserve and are a clear guide to the future US interest rate policy.
Next release: Wed Oct 08, 2025 18:00
Frequency: Irregular
Consensus: -
Previous: -
Source: Federal Reserve
Minutes of the Federal Open Market Committee (FOMC) is usually published three weeks after the day of the policy decision. Investors look for clues regarding the policy outlook in this publication alongside the vote split. A bullish tone is likely to provide a boost to the greenback while a dovish stance is seen as USD-negative. It needs to be noted that the market reaction to FOMC Minutes could be delayed as news outlets don’t have access to the publication before the release, unlike the FOMC’s Policy Statement.
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