AUD/USD Struggles to Break Below 0.6600 Level as RBA Support Counters Risk Selloff

The Australian Dollar finds itself under pressure for a fourth consecutive session, with AUD/USD trading near 0.6630 and testing support around the 0.6600-0.6600s region. While bearish sentiment persists, deeper declines appear limited given contrasting policy signals from major central banks.

Mixed Signals Keep AUD/USD Range-Bound

Last week’s tepid Australian employment figures combined with disappointing Chinese economic data have triggered renewed concerns about Asia’s growth outlook. This has amplified the softer risk sentiment across global markets, putting particular pressure on the commodity-linked Australian Dollar. Meanwhile, equity markets have traded on a weaker footing, further dampening appetite for higher-yielding currencies.

However, RBA Governor Michele Bullock’s recent comments inject a bullish element for AUD bulls. Her assertion that additional rate cuts appear unnecessary—coupled with indications the Board is considering future tightening—signals the RBA’s relatively hawkish stance compared to peers. This policy divergence provides meaningful support for the AUD/USD pair.

US Dollar Weakness Offers Additional Cushion

The greenback continues to face headwinds, with the US Dollar Index (DXY) hovering near seven-week lows as traders price in growing expectations for additional Federal Reserve rate cuts. Speculation around a dovish successor to Fed Chair Jerome Powell has kept USD bulls subdued, providing tailwinds for the AUD/USD pair.

NFP Report Looms as Key Catalyst

Market participants appear hesitant to commit to aggressive positioning ahead of this week’s critical economic releases, particularly the delayed October US Nonfarm Payrolls (NFP) report. This data holds potential to shake up current trading ranges and could influence whether the AUD/USD pair’s recent recovery sustains or reverses.

For traders managing 15 AUD to USD conversions, the technical level around 0.6600-0.6630 remains a key battleground. Strong follow-through selling would be needed to confirm weakness, while consolidation suggests market indecision ahead of the NFP catalyst.