Created
: 2025.05.05
- English
- English
- What's Myforex
- Share
- Use tools
- Get information
- What's New
- Help center
- About us
- Customer support
- Terms and policies
-
-
PortfolioShare your portfolio and performance in real time -
Events & contestsEvents and contests held by retail brokers around the world
-
-
Real-time spread comparisonCompare spreads of major retail brokers in real time -
Volatility analysisVisualize volatility as a measure of daily market activity -
Swap point comparisonCompare buy and sell swap values for each broker by symbol -
Market rates & chartsCheck prices for all instruments offered by each broker -
IndicatorsProviding in-house developed indicators for MT4/MT5 -
Trading calculatorsCalculation tools for each broker to help you trade
-
-
World FX newsLatest news on forex and cryptocurrencies from around the world -
Broker informationTrading information of retail brokers worldwide -
MetaTrader4/5 user guideUser guide collection for the latest MetaTrader4/5 -
Economic calendarRelease calendar for indicators from official sources of major economies
AUD/USD refreshes five-month high near 0.6500 as Australian Labor Party retains power
World FX news
Breaking news
AUD/USD refreshes five-month high near 0.6500 as Australian Labor Party retains power
New
2025.05.05 20:45
2025.05.05 20:45
2025.05.05 20:45
- AUD/USD jumps to near 0.6500, the highest level seen in five months.
- The victory of the Australian Labor Party has strengthened the Australian Dollar.
- Investors expect the Fed to keep interest rates steady on Wednesday.
The AUD/USD pair posts a fresh five-month high near the psychological level of 0.6500 on Monday. The Aussie pair strengthens as the Australian Dollar (AUD) outperforms, with the single-country continent's Labor Party securing a second consecutive three-year term after winning parliamentary elections.
Australian Dollar PRICE Today
The table below shows the percentage change of Australian Dollar (AUD) against listed major currencies today. Australian Dollar was the strongest against the Canadian Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.06% | -0.40% | -0.56% | -0.01% | -0.45% | -0.59% | -0.29% | |
| EUR | 0.06% | -0.06% | -0.24% | 0.32% | -0.12% | -0.26% | 0.04% | |
| GBP | 0.40% | 0.06% | -0.40% | 0.38% | -0.06% | -0.20% | 0.10% | |
| JPY | 0.56% | 0.24% | 0.40% | 0.55% | 0.12% | 0.05% | 0.37% | |
| CAD | 0.00% | -0.32% | -0.38% | -0.55% | -0.74% | -0.59% | -0.29% | |
| AUD | 0.45% | 0.12% | 0.06% | -0.12% | 0.74% | -0.15% | 0.16% | |
| NZD | 0.59% | 0.26% | 0.20% | -0.05% | 0.59% | 0.15% | 0.30% | |
| CHF | 0.29% | -0.04% | -0.10% | -0.37% | 0.29% | -0.16% | -0.30% |
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 Australian Dollar from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent AUD (base)/USD (quote).
The victory of Australia's Labor Party leader Anthony Albanese has indicated the continuation of current economic policies, a scenario that is theoretically favorable for the economic outlook.
However, investors are still uncertain about Australia's economic prospects in the face of the trade war between the United States (US) and China. Given that Australia is the leading trading partner of China, sparking concerns over Beijing's economy weighs on the Australian Dollar.
Meanwhile, a weak start by the US Dollar (USD) at the start of the week has also supported the Aussie pair. The US Dollar Index (DXY), which tracks the Greenback's value against six major currencies, slumps to near 99.60.
The USD Index trades lower ahead of the Federal Reserve's (Fed) interest rate decision, which will be announced on Wednesday. Traders have fully priced in that the Fed will keep interest rates unchanged in the range of 4.25%-4.50%. The reasoning behind the Fed leaving its key borrowing rates steady is elevated consumer inflation expectations and better-than-expected Nonfarm Payrolls (NFP) data for April.
Australian Dollar FAQs
One of the most significant factors for the Australian Dollar (AUD) is the level of interest rates set by the Reserve Bank of Australia (RBA). Because Australia is a resource-rich country another key driver is the price of its biggest export, Iron Ore. The health of the Chinese economy, its largest trading partner, is a factor, as well as inflation in Australia, its growth rate and Trade Balance. Market sentiment - whether investors are taking on more risky assets (risk-on) or seeking safe-havens (risk-off) - is also a factor, with risk-on positive for AUD.
The Reserve Bank of Australia (RBA) influences the Australian Dollar (AUD) by setting the level of interest rates that Australian banks can lend to each other. This influences the level of interest rates in the economy as a whole. The main goal of the RBA is to maintain a stable inflation rate of 2-3% by adjusting interest rates up or down. Relatively high interest rates compared to other major central banks support the AUD, and the opposite for relatively low. The RBA can also use quantitative easing and tightening to influence credit conditions, with the former AUD-negative and the latter AUD-positive.
China is Australia's largest trading partner so the health of the Chinese economy is a major influence on the value of the Australian Dollar (AUD). When the Chinese economy is doing well it purchases more raw materials, goods and services from Australia, lifting demand for the AUD, and pushing up its value. The opposite is the case when the Chinese economy is not growing as fast as expected. Positive or negative surprises in Chinese growth data, therefore, often have a direct impact on the Australian Dollar and its pairs.
Iron Ore is Australia's largest export, accounting for $118 billion a year according to data from 2021, with China as its primary destination. The price of Iron Ore, therefore, can be a driver of the Australian Dollar. Generally, if the price of Iron Ore rises, AUD also goes up, as aggregate demand for the currency increases. The opposite is the case if the price of Iron Ore falls. Higher Iron Ore prices also tend to result in a greater likelihood of a positive Trade Balance for Australia, which is also positive of the AUD.
The Trade Balance, which is the difference between what a country earns from its exports versus what it pays for its imports, is another factor that can influence the value of the Australian Dollar. If Australia produces highly sought after exports, then its currency will gain in value purely from the surplus demand created from foreign buyers seeking to purchase its exports versus what it spends to purchase imports. Therefore, a positive net Trade Balance strengthens the AUD, with the opposite effect if the Trade Balance is negative.
Last updated
: 2025.05.05
Related articles
EUR/USD Price Analysis: Euro holds firm near 1.1300 as bullish trend persists
38 minutes agoGBP/USD rises above 1.33 as US PMI data fails to lift USD
2025.05.06 00:11Silver Price Forecast: XAG/USD surges to near $32.60 as US Dollar weakens, Fed policy in focus
2025.05.05 23:22Mexican Peso steadies as US-Mexico tension and policy divergence dominate focus
2025.05.05 23:09US ISM Services PMI climbs to 51.6 in April
2025.05.05 23:02AUD/USD refreshes five-month high near 0.6500 as Australian Labor Party retains power
2025.05.05 20:44
FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.
Was this article helpful?
We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.
please contact us at [email protected].
Thank you for your feedback.
Thank you for your feedback.
Most viewed
EUR/USD Price Analysis: Euro holds firm near 1.1300 as bullish trend persists
The EUR/USD pair edged higher on Monday, trading around the 1.1300 zone following the European session. Price action stayed confined within the mid-range of the day's movement, reflecting a steady grind higher rather than an impulsive breakout.
New
2025.05.06 00:35GBP/USD rises above 1.33 as US PMI data fails to lift USD
The Pound Sterling advanced some 0.32% against the US Dollar on Monday, back above the 1.33 handle, as market participants digested data from the United States (US) portraying that business activity in the services sector is gathering some steam, yet fails to underpin the Greenback.
New
2025.05.06 00:11Silver Price Forecast: XAG/USD surges to near $32.60 as US Dollar weakens, Fed policy in focus
Silver price (XAG/USD) rallies to near $32.60 during North American trading hours on Monday. The white metal strengthens as the US Dollar (USD) slumps at the start of the week, with the Federal Reserve's (Fed) monetary policy meeting in focus.
New
2025.05.05 23:22Mexican Peso steadies as US-Mexico tension and policy divergence dominate focus
The Mexican Peso (MXN) remains resilient against the US Dollar (USD) in Monday's European session despite rising tensions over the weekend between Mexican President Claudia Sheinbaum and US President Donald Trump regarding a rejected proposal to deploy American troops in Mexico.
New
2025.05.05 23:09US ISM Services PMI climbs to 51.6 in April
Economic activity in the US service sector gathered momentum in April, with the ISM Services PMI advancing to 51.6 from 50.8 in March, coming in above analysts' estimates of 50.6.
New
2025.05.05 23:02AUD/USD refreshes five-month high near 0.6500 as Australian Labor Party retains power
The AUD/USD pair posts a fresh five-month high near the psychological level of 0.6500 on Monday.
New
2025.05.05 20:44US Dollar edges lower after Taiwan Dollar surges amid exporter panic
The US Dollar Index (DXY), which tracks the performance of the US Dollar (USD) against six major currencies, edges lower and remains capped below the 100.00 level at the time of writing on Monday after the Taiwan Dollar (TWD) surges over 5% and triggers a spillover effect in Asian currencies against
New
2025.05.05 20:17WTI recovers early losses, acceleration in Oil output is still a concern
West Texas Intermediate (WTI), futures on NYMEX, recoups a substantial share of initial losses and rebounds from the intraday low of $55.14 to near $57.30 during European trading hours on Monday.
New
2025.05.05 19:52Pound Sterling edges higher against US Dollar in Fed-BoE monetary policy week
The Pound Sterling (GBP) ticks up to near 1.3285 against the US Dollar (USD) during European trading hours on Monday, rebounding from a fresh weekly low around 1.3260 earlier in the day.
New
2025.05.05 18:53Taiwan central bank Governor: US did not ask Taiwan Dollar to appreciate
Speaking at a new conference, Taiwanese central bank Governor Yang Chin-long clarified that the "US did not ask Taiwan Dollar (TWD) to appreciate."
New
2025.05.05 18:32Disclaimer:
All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.
The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.
Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy
