- The AUD/USD finds support about 0.6270 while the US dollar goes back as the fears of commercial war between the US and Colombia decrease.
- The Fed is expected to maintain stable interest rates in the range of 4.25% -4.50% on Wednesday.
- Investors expect the data of the Australian CPI, which will influence the expectations of interest rates of the RBA.
The Aud/Usd torque recovers some intimate losses after sliding about 0.6270 in the European session on Monday, but is still below 0.2%. The Australian torque bounces while the US dollar (USD) yields profits and becomes negative, with the US dollar index (DXY) by retreating about five weeks of 107.20 from the maximum intradic of 107.75.
The USD index attracted significant offers at the beginning of the week after the president of the United States (USA), Donald Trump, proposed 25% tariffs to Colombia for not accepting military flights that transport deportees. The event caused risks of a commercial war, which increased the demand for safe refuge of the US dollar.
However, the US dollar later retreated when White House reports confirmed that the Colombian government accepted Trump’s terms to accept illegal immigrants. After that, Trump was waiting for the proposed tariffs.
This week, the main trigger for the US dollar will be the monetary policy decision of the Federal Reserve (FED), which will be announced on Wednesday. It is almost certain that the Fed will leave interest rates without changes in the range of 4.25%-4.50%. Investors will pay close attention to the guidance of the Fed on the monetary policy and the opinion of those responsible for the monetary policy about Trump’s call to immediate feature cuts.
Meanwhile, the Australian dollar (AUD) shows weak performance in front of its main peers, with investors focused on the inflation data of the fourth quarter, which will be published on Wednesday. According to the consumer price index (CPI), the price pressures are expected to have grown 2.5%, compared to the same quarter of the previous year, slower than the 2.8% growth in the previous quarter. It is estimated that the quarterly CPC has grown 0.3%, faster than the 0.2% increase in the third quarter of 2024.
Australian dollar Price today
The lower table shows the percentage of change of the Australian dollar (AUD) compared to the main currencies today. Australian dollar was the strongest currency against the New Zealand dollar.
USD | EUR | GBP | JPY | CAD | Aud | NZD | CHF | |
---|---|---|---|---|---|---|---|---|
USD | -0.04% | -0.14% | -1.02% | -0.05% | 0.26% | 0.17% | -0.64% | |
EUR | 0.04% | -0.03% | -0.84% | 0.13% | 0.29% | 0.33% | -0.50% | |
GBP | 0.14% | 0.03% | -1.12% | 0.16% | 0.33% | 0.37% | -0.47% | |
JPY | 1.02% | 0.84% | 1.12% | 1.01% | 1.46% | 1.42% | 0.52% | |
CAD | 0.05% | -0.13% | -0.16% | -1.01% | 0.11% | 0.22% | -0.62% | |
Aud | -0.26% | -0.29% | -0.33% | -1.46% | -0.11% | 0.07% | -0.75% | |
NZD | -0.17% | -0.33% | -0.37% | -1.42% | -0.22% | -0.07% | -1.05% | |
CHF | 0.64% | 0.50% | 0.47% | -0.52% | 0.62% | 0.75% | 1.05% |
The heat map shows the percentage changes of the main currencies. The base currency is selected from the left column, while the contribution currency is selected in the upper row. For example, if you choose the Australian dollar of the left column and move along the horizontal line to the US dollar, the percentage change shown in the box will represent the Aud (base)/USD (quotation).
Soft inflation numbers would generate expectations that the Bank of the Australian Reserve (RBA) will begin to dismantle its restrictive policy from the monetary policy meeting in February. On the contrary, high readings would do the opposite.
US dollar FAQS
The US dollar (USD) is the official currency of the United States of America, and the “de facto” currency of a significant number of other countries where it is in circulation along with local tickets. According to data from 2022, it is the most negotiated currency in the world, with more than 88% of all global currency change operations, which is equivalent to an average of 6.6 billion dollars in daily transactions. After World War II, the USD took over the pound sterling as a world reserve currency.
The most important individual factor that influences the value of the US dollar is monetary policy, which is determined by the Federal Reserve (FED). The Fed has two mandates: to achieve price stability (control inflation) and promote full employment. Its main tool to achieve these two objectives is to adjust interest rates. When prices rise too quickly and inflation exceeds the 2% objective set by the Fed, it rises the types, which favors the price of the dollar. When inflation falls below 2% or the unemployment rate is too high, the Fed can lower interest rates, which weighs on the dollar.
In extreme situations, the Federal Reserve can also print more dollars and promulgate quantitative flexibility (QE). The QE is the process by which the Fed substantially increases the flow of credit in a stuck financial system. It is an unconventional policy measure that is used when the credit has been exhausted because banks do not lend each other (for fear of the default of the counterparts). It is the last resort when it is unlikely that a simple decrease in interest rates will achieve the necessary result. It was the weapon chosen by the Fed to combat the contraction of the credit that occurred during the great financial crisis of 2008. It is that the Fed prints more dollars and uses them to buy bonds of the US government, mainly of financial institutions. Which usually leads to a weakening of the US dollar.
The quantitative hardening (QT) is the reverse process for which the Federal Reserve stops buying bonds from financial institutions and does not reinvote the capital of the wallet values ​​that overcome in new purchases. It is usually positive for the US dollar.
Source: Fx Street

I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.