Aussie Dollar Weakens Amid Tech Stock Sell-Off

AUD

The Australian Dollar opens slightly down across the majors as markets react to the AI sell-off on Wall Street, with the Aussie Dollar currently the weakest currency of the G8 FX space. Asian equities were lower yesterday with the Nikkei and Hang Seng both -1.4% and the Shenzhen -1.1%. Locally the ASX 200 shed .8% as materials and financials sectors led losses at -2% and -1% respectively. Yesterday saw the release of the MI Inflation Expectations survey which printed at 5.3% from a previous 4.9%, reaching the highest level in four months. Attention now turns to next Tuesday's release of the Reserve Bank of Australia's minutes, which will offer the first read on appetite for a fifth-rate hike in 2026. Ahead of the November 3 RBA meeting, markets are pricing in roughly a 1-in-4 chance of a cash rate increase to 4.85%.

USD

AUDUSD opens flat at 0.6958, despite the US Dollar notching its sixth consecutive session of marginal gains following hawkish commentary from the Federal Reserve meeting minutes. A softening technology sector weighed on broader risk sentiment overnight and saw the Nasdaq close -1.25%, the S&P 500 -0.5% whilst the Dow Jones Industrial Average managed 0.1% gains. US Unemployment Claims released overnight and came in slightly under expectations at 197K (exp 200K) from a previous 199K. U.S. Federal Reserve Governor Waller spoke overnight and stated that additional rate hikes will likely be needed to lower inflation to the Fed's 2% target but added there was "flexibility" about ‌the pace of increases. Looking ahead, Federal Reserve official Collins is scheduled to speak today ahead of the non-farm payrolls report, with next Wednesday's Core CPI release set to provide further direction on inflation.

EUR

AUDEUR opens slightly lower to 0.6206 as the Euro remains under persistent selling pressure, largely fueled by ongoing fiscal concerns in France. European stock markets opened in negative territory with Germany's DAX down -1.2% and France's CAC falling -0.5%. Some minor data out today to close the week with Italian Industrial Production m/m set for release.

GBP

AUDGBP opens flat at a rate of 0.5260 as the United Kingdom successfully finalised a trade agreement with the US in advance of the new tariff executive order coming into force tomorrow. On the market front, the UK's FTSE mirrored wider European weakness to close 0.2% lower. Looking ahead to next week, traders will be focused on Thursday's release of UK month-over-month GDP data, with consensus expectations pointing to a 0.4% expansion.

NZD

AUDNZD opens slightly down at a rate of 1.2417 after a quiet week on the economic calendar. The next key data event comes on October 20th when NZ's CPI inflation data is set for release.