Reuters reported the Australian dollar fell 1% Thursday, the largest drop among Group of 10 currencies, as technology shares led a broad U.S. selloff and the dollar later drew haven demand.
FXStreet’s Friday report put AUD/USD near 0.6880 at 2:06 a.m. ET, after the pair had lost ground for a second consecutive session. An earlier FXStreet update, at 6:19 p.m. ET Thursday, showed the pair at 0.6931 after it had reached 0.7024.
Reuters said the Nasdaq fell 5.5% Thursday. The S&P 500 and Dow Jones Industrial Average dropped 4.4% and 3.4%, respectively. In a separate Friday report, Reuters said haven buying supported the U.S. dollar, while lower Treasury yields limited its advance.
Separately, the Reserve Bank of Australia (RBA) raised its cash rate target by 25 basis points to 4.85% on Nov. 3. Six board members voted for the increase and three favored holding the rate at 4.60%. The RBA said it expected inflation to top 3% over the next year, citing fuel and other commodity prices as well as pressure on domestic capacity.
RBA Governor Michele Bullock said mortgage holders would find the increase difficult. She also said high prices put particular pressure on lower-income Australians and renters with little or no savings, and described the bank’s stance as “preserving our options.”
FXStreet’s AI-assisted chart analysis characterized the near-term setup as bearish, citing a 14-day Relative Strength Index of 35. It put the pair below its nine-day exponential moving average at 0.6970 and 50-day average at 0.7018, and marked 0.6833 as a technical floor and 0.6970 as resistance.
The U.S. Bureau of Labor Statistics (BLS) scheduled its October Employment Situation report for 8:30 a.m. ET Friday, Nov. 6.
