CANADA DATA: Labour Force Survey Preview: Analysts Centered On +10k Gains (2/2)

The AUD/USD had a range overnight of 0.6579-0.6602, Asia is trading around 0.6580. US equities upward momentum looks to be stalling for now and the USD is building on its recent reprieve. The AUD could not push above the 0.6625/50 resistance and has drifted lower from there in sympathy with the broader USD move and the risk backdrop looking a little toppy. This puts the AUD back in its recent range, and if the USD pullback continues to build the risk is skewed towards further losses, first support lies toward the 0.6475 area.

• Bloomberg - “Australia Home Rents Surge as Vacancy Sinks to Record Low. Australia’s home rental market tightened further in the third quarter, with the national vacancy rate sinking to a record low, in a setback for inflation prospects and hopes of near-term rate cuts. The Cotality Rental Value Index, which measures national dwelling rents, climbed 1.4% in the three months to the end of September, its largest quarterly gain since mid-2024. On an annual basis, rents jumped 4.3%.”
• “A Pentagon review of the AUKUS pact between the US, Australia and the UK is a “brass-tack” evaluation of its affordability and whether the agreement fits with President Donald Trump’s foreign-policy priorities, a Defense Department nominee said.” - BBG
• Options : Closest significant option expiries for NY cut, based on DTCC data: 0.6300(AUD899m), 0.6725(AUD 398m). Upcoming Close Strikes : 0.6545(AUD607m Oct 10)- BBG
• Data/Event: Foreign Reserves

Fig 1: AUD/USD spot Daily Chart

Source: MNI - Market News/Bloomberg Finance L.P

Source: Bloomberg Finance L.P./MNI 

Source: Bloomberg Finance L.P./MNI