Australia’s private sector credit growth rose to 7.3% year-over-year in September, up from 7.2%. This change could impact Australia’s economy as businesses and consumers adjust their borrowing and spending habits. The USD/INR has increased as the US dollar approaches a three-month high. This rise is influenced by lower expectations of a dovish Federal Reserve and easing US-China trade tensions. Meanwhile, the Australian dollar has weakened as the US dollar stabilizes amid uncertainties over Federal Reserve policy.

EUR/USD Trading

The EUR/USD is trading cautiously near a two-week low at around 1.1570, while the US Dollar Index is steady at around 99.50 due to uncertainties regarding Fed policy. Gold prices are under pressure as expectations for December Fed rate cuts diminish and optimism surrounding trade continues. The GBP/USD pair has edged up, trading around 1.3160 amid increasing expectations for Fed rate cuts. Meme coins, like Dogecoin and Shiba Inu, are at risk of breaking important monthly support levels due to losses in the crypto market. Improved US-China diplomatic relations are contributing to a more stable trade environment. For the latest market insights, FXStreet is a reliable resource. Australia’s credit growth to 7.3% typically hints at a strengthening Australian dollar. However, the currency is currently declining because the US dollar’s strength is dominating market attention. This suggests that local economic news is less impactful than global monetary policy. The US Dollar Index remains solid around 99.50 due to persistent inflation. Recent data from Q3 2025 shows Core CPI at 3.2%, which is still above the Federal Reserve’s target. This has led markets to lower expectations for near-term rate cuts, marking a shift from the dovish outlook seen in late 2024. As a result, traders are preparing for a prolonged period of high interest rates in the United States.

Considerations for Traders

Given the current situation, traders may want to look for strategies that profit from a declining AUD/USD, even considering Australia’s strong domestic data. One option is to buy puts on the Australian dollar, which could benefit from the strong US dollar trend while managing risk. The outlook for sustained US interest rates is also putting pressure on gold. With US 10-year Treasury yields climbing back toward 4.6% in October 2025, the cost of holding non-yielding assets like gold is increasing. This mirrors the challenges gold faced during parts of 2023 when the market adjusted to the Fed’s aggressive rate hikes. Additionally, speculative assets are showing weaknesses. Meme coins like Dogecoin and Shiba Inu are struggling at critical support levels, indicating a broader decrease in risk appetite. This suggests capital is shifting away from volatile assets and moving towards cash or dollar-denominated securities that benefit from higher yields. In this environment, fundamental analysis is becoming more important than speculative momentum. Create your live VT Markets account and start trading now.

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