Created
: 2025.08.28
- 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 extends upside above 0.6500 as RBA rate cut hopes fade
World FX news
Breaking news
AUD/USD extends upside above 0.6500 as RBA rate cut hopes fade
New
2025.08.28 08:52
2025.08.28 08:52
2025.08.28 08:52
- AUD/USD strengthens to around 0.6505 in Thursday's early Asian session.
- Australian monthly CPI inflation climbs to 2.8% in July from 1.9% in June.
- Concerns over the Fed's independence persist, weighing on the US Dollar.
The AUD/USD pair extends the rally to near 0.6505 during the early Asian session on Thursday. The Australian Dollar (AUD) edges higher against the US Dollar (USD) as hotter-than-expected Australian inflation data dents bets on the Reserve Bank of Australia (RBA) rate cut. The second estimate of the US Gross Domestic Product (GDP) report for the second quarter (Q2) will take center stage later on Thursday.
Data released by the Australian Bureau of Statistics (ABS) on Wednesday showed that the country's monthly Consumer Price Index (CPI) rose 2.8% YoY in July, compared to an increase of 1.9% in June. This figure came in above the market consensus of 2.3% and registered the highest rate since July 2024.
The hotter Australian inflation data has pushed back expectations for another RBA rate reduction. Analysts expect a September rate cut to be highly unlikely, with the board expected to wait until the November meeting, once the September quarter CPI is released on October 29.
On the USD's front, unabated concerns over the Federal Reserve's (Fed) independence could exert some selling pressure on the Greenback. US President Donald Trump stated on Monday that he has fired Fed Governor Lisa Cook, the first instance of a president firing a central bank governor in the Fed's history. In response, Cook said Trump has no authority to fire her from the central bank, and she will not resign.
The second estimate of US GDP is due later on Thursday, which is expected to grow at an annual rate of 3.1% in Q2. In case of a stronger-than-expected outcome, this could underpin the Greenback in the near term.
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
: 2025.08.28
Related articles
BoJ's Nakagawa: Will continue to raise interest rate if economic, inflation outlook realized
4 minutes agoChina's trade negotiator: Frank, pragmatic, constructive exchanges with Canada
18 minutes agoPBOC sets USD/CNY reference rate at 7.1063 vs. 7.1108 previous
25 minutes agoGBP/USD maintains position around 1.3500 ahead of Q2 US GDP Annualized
43 minutes agoNZD/USD holds steady above 0.5860 ahead of US GDP release
50 minutes agoChina seeks to triple output of AI chips in race with the US -- FT
2025.08.28 09:32
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
BoJ's Nakagawa: Will continue to raise interest rate if economic, inflation outlook realized
Bank of Japan (BoJ) monetary policy board member Junko Nakagawa said on Thursday, "if its outlook for economic activity and prices is realized, BoJ will continue to raise the policy interest rate."
New
2025.08.28 10:41China's trade negotiator: Frank, pragmatic, constructive exchanges with Canada
China's top trade negotiator Li Chenggang said on Thursday that China and Canada had frank, pragmatic and constructive exchanges on improving and developing bilateral economic and trade relations.
New
2025.08.28 10:27PBOC sets USD/CNY reference rate at 7.1063 vs. 7.1108 previous
On Thursday, the People's Bank of China (PBOC) set the USD/CNY central rate for the trading session ahead at 7.1063 as compared to the previous day's fix of 7.1108 and 7.1479 Reuters estimate.
New
2025.08.28 10:20GBP/USD maintains position around 1.3500 ahead of Q2 US GDP Annualized
GBP/USD remains steady after two days of gains, trading around 1.3500 during the Asian hours on Thursday. The pair may further appreciate as the US Dollar (USD) struggles amid rising concerns over the US Federal Reserve's (Fed) independence.
New
2025.08.28 10:02NZD/USD holds steady above 0.5860 ahead of US GDP release
The NZD/USD pair trades on a flat note around 0.5860 during the early Asian session on Thursday.
New
2025.08.28 09:56China seeks to triple output of AI chips in race with the US -- FT
China's chipmakers are seeking to triple the country's total output of artificial intelligence processors next year, the Financial Times reported on Thursday.
New
2025.08.28 09:32AUD/USD extends upside above 0.6500 as RBA rate cut hopes fade
The AUD/USD pair extends the rally to near 0.6505 during the early Asian session on Thursday. The Australian Dollar (AUD) edges higher against the US Dollar (USD) as hotter-than-expected Australian inflation data dents bets on the Reserve Bank of Australia (RBA) rate cut.
New
2025.08.28 08:51USD/JPY weakens below 147.50 amid unabated concerns over Fed's independence
The USD/JPY pair loses ground to near 147.20 during the early Asian session on Thursday. The US Dollar (USD) weakens against the Japanese Yen (JPY) as worries persist over the Federal Reserve's (Fed) independence.
New
2025.08.28 08:09USD/CHF Price Forecast: Slips to 0.8020 as safe-haven boosts Franc
USD/CHF extended its downtrend for the second straight day, down 0.16%, trading at 0.8020 after hitting a daily high of 0.8076. A flight to safety has favored the Swiss Franc as the Dollar digest the dovish tilt by the Fed Chair Jerome Powell, who opened the door for adjusting interest rates.
New
2025.08.28 07:16EUR/USD slips to 1.1630 as Fed drama fades, France risk grows
The EUR/USD retreats a minimal 0.10% on Wednesday as developments about the Federal Reserve's independence dissipated, while the French Prime Minister Bayrou called for a confidence vote. At the time of writing, the pair trades at 1.1631, after hitting a daily high of 1.1647.
New
2025.08.28 06:58Disclaimer:
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
