The US Dollar slipped on Tuesday following weaker-than-expected US September payrolls and easing Treasury yields, prompting gains in the Australian Dollar and Euro ahead of the Federal Reserve's October policy meeting. According to FX Street, AUD/USD rose 0.13% to trade around 0.6980, supported by a modest pullback in the greenback and lower US yields.
Meanwhile, EUR/USD climbed 0.29% to approximately 1.1255, buoyed by the softer US Dollar. However, concerns over France’s fiscal position have limited the Euro's upside, FX Street reported. Market participants are increasingly cautious as they await September CPI data, which will influence expectations for the Fed’s October rate hike.
UOB’s Alvin Liew highlighted that subdued wage growth and weaker payroll numbers have dampened market bets on a Fed rate increase next month. For Japanese investors, these currency moves underscore the importance of closely monitoring US economic indicators and Fed signals, which continue to impact FX and equity market dynamics in Asia.