Australian Dollar breaks below 100-day SMA after hot US inflation data
The Australian Dollar weakens against the US Dollar on Thursday after encountering a key resistance confluence at the 50- and 200-day SMAs, while strong US data reaffirmed the economy’s strength, which could increase the chances of higher interest rates. The AUD/USD trades at 0.7020.
The Australian Dollar slipped below the 100-day simple moving average in the wake of robust US inflation data, which bolstered the outlook for higher interest rates. The AUD/USD pair traded at 0.7020 on Thursday. Wall Street closed lower, mirroring a negative market sentiment. In the US, economic growth in the third quarter of 2026 came in at 3.4% year-over-year, surpassing expectations and previously reported figures of 3.2% and 2.2%.
Meanwhile, the Federal Reserve's core personal consumption expenditures price index rose by 3.1% in September, in line with predictions. Early jobless claims for the week ending on October 24 dropped from 195K to 194K, below forecasts. This data prompted a decrease in the odds of a hawkish Federal Reserve stance, falling from 84% on Wednesday to 76% as of the writing.
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