Aussie Dollar Slides Following Global Selloff

AUD

The AUD is down against the majors on the back of a global sell off of equities, driven by concerns  of over valuations in the AI sector. Despite the drop, we remain within a rate range well above the levels seen for the majority of 2025 across the majors. Asian equities traded lower on Thursday, with the Nikkei -0.8%, ASX 200 -0.4%, and the Hang Seng +0.1%. RBA Governor Bullock speaks this morning, which will provide further clues regarding a second likely hike in May, following the RBA's recent lift of the cash rate to 3.85%. There is no other major data scheduled for the immediate future.
 

USD

AUDUSD opens down at 0.6929 despite softer labor data. U.S. equities remained in the red in late trade: the Nasdaq trading -1%, S&P at -0.9%, and the Dow Jones -0.7%. Overnight Unemployment Claims data printed at 231k (forecasted at 212k) and JOLTS Job Openings came in at 6.54M (forecasted at 7.25M) indicating that the US is in a tougher position in regards to employment. Diplomatic friction regarding Greenland has added a layer of "political risk" to the Dollar, as international partners question the stability of U.S. foreign and fiscal policy. The key metric to watch tonight will be the preliminary consumer sentiment report heading into the weekend.
 

EUR

AUDEUR is down overnight, sitting at 0.5883; nevertheless, it remains at rates equal to March 2025. In Europe, the ECB also decided to keep policy rates on hold. President Lagarde acknowledged that an appreciation of the Euro could push inflation below the desired level but indicated that most of last year’s Euro strengthening is already accounted for in the ECB’s forecasts. European equities closed down, with DAX at -0.5% and the CAC at -0.3%. Following today's press conference, the Eurozone calendar next week will provide several indicators that will test the "resilience" narrative in the coming weeks.
 

GBP

Sterling remains unchanged, despite the Aussie Dollar's fall against most majors opening at 0.5122, as the British Pound navigates a period of significant policy friction. The Bank of England decided to keep the bank rate unchanged at 3.75% last night. The MPC’s 5-4 vote highlights how finely balanced the decision was. The UK FTSE was down -0.9% since yesterday, a reflection of growing uncertainty. Looking ahead, there is little significant data due until Wednesday’s GDP figures.
 

NZD

AUDNZD is slightly down to 1.1642, as the New Zealand Dollar has emerged as the clear underperformer in the G10 currency basket for February 2026. Weak unemployment figures have severely dampened the outlook for the Kiwi economy, leading to a significant divergence from the Australian Dollar. We are currently at 13-year highs, and with no data due and a bank holiday today, markets will wait until major data is released.