Australian Dollar Falls to $0.6872, Its Lowest Level in 18 Weeks
Key Facts
The Australian dollar fell to US$0.6872 on November 6, its lowest level in 18 weeks, as Asian currencies came under pressure from a wave of technology share selling. An Investing.com report citing Reuters said the currency declined as investors moved into safe-haven assets. The move followed sharp losses in U.S. stocks during Thursday’s November 5 session. The Nasdaq plunged 5.52%, its steepest decline since April 2025, while the S&P 500 fell 4.36%. The move highlighted the Australian currency’s sensitivity to a decline in risk appetite.
The sell-off spread to Asian markets on November 6, with Tokyo’s Nikkei falling 6.1% to 57,332.92 points and South Korea’s Kospi dropping 5.3%. U.S. stocks had recorded broad losses in the previous session; the Associated Press said the S&P 500 suffered its worst day since April 2025. The agency added that the Nasdaq was 11.9% below its record high set in the previous month. In the bond market, the yield on 10-year U.S. Treasuries fell to 4.84% on Thursday, from 4.90% late Wednesday. The Associated Press linked the decline in yields to possible demand for bonds as a safer haven during the stock market drop.
Reuters attributed the initial shift away from risk to Democrats winning both chambers of the U.S. Congress, amid concerns about tighter oversight of artificial intelligence and data center construction. Investing.com said the sell-off in U.S. technology shares drove investors toward safe-haven assets, coinciding with the Australian currency’s decline. Demand for havens was also reflected in the yen’s movement on Thursday, November 5, when it rose 0.6% to 157.54 yen per dollar. This coincided with Wall Street losses, the report said. In this context, the Australian dollar faced pressure from falling stocks, although recent Australian trade data showed an improvement in the goods trade surplus.
Australia’s seasonally adjusted goods trade surplus was A$2,826 million in September 2026, after A$184 million in August. The surplus therefore increased by A$2,642 million during the month, according to the Australian Bureau of Statistics. The data were released on November 5, but covered September trade. In the United States, initial jobless claims for the week ended October 31 fell by 6,000 to 189,000, according to figures reported by Reuters. The total was below the Reuters poll estimate of 196,000 and matched the lowest level recorded in July in 57 years.
The Australian dollar-U.S. dollar pair closed at 0.69297 on November 5, compared with 0.70041 on November 4, according to EL7 daily data. In domestic monetary policy, the Reserve Bank of Australia raised its target interest rate by 25 basis points to 4.85%, effective November 4. The bank said inflation remained well above target, and that higher global energy prices linked to the Middle East conflict had added to inflationary pressures. It said tighter financial conditions were warranted in light of these pressures. Investing.com described the increase as the fifth hike during 2026 and said it brought the rate to its highest level in 18 years, with the vote split 6 to 3.
The Reserve Bank of Australia forecast that tight monetary policy and weak housing market prospects would keep gross domestic product growth below trend. It also expected the unemployment rate to edge above 5% by the end of 2028. Investors were awaiting the U.S. employment situation report for October on November 6, scheduled for release at 08:30 a.m. Eastern Time, according to the Bureau of Labor Statistics calendar. Reuters said markets would follow the nonfarm payrolls report to assess the Federal Reserve’s interest rate path. The Australian Bureau of Statistics had set December 3, 2026, as the release date for October goods trade data.