Investment Insights - Driven by the significant rise in iron ore and gold prices, as well as the Fed's interest rate cut expectations, the market's risk appetite continues to rise, leading to a sustained increase in the Australian dollar Exchange Rate.

On October 1, 2025, the AUD/USD Exchange Rate rose to 0.6636, reaching its highest level since November 2024.

Experts analyze that the continuous rise of the Australian dollar Exchange Rate is mainly driven by two factors: firstly, the rise in prices of bulk commodities such as iron ore and gold; secondly, the market's growing expectations of a Fed rate cut, which has boosted risk appetite.

As the world's largest producer and exporter of iron ore, Australia is also an important exporter of gold. In the past month, the price of iron ore has risen by 3.8%, while the price of gold has increased by 6.8%.

At the same time, amid weak employment data in the United States, the market generally expects the Fed to implement three rate cuts within the year, which greatly enhances investors' risk appetite.

So, what will be the future trend of the AUD/USD Exchange Rate?

From a technical analysis perspective, the AUD/USD has broken through this year's high, which may open up greater upside potential, with the next key target likely around 0.67.

From a fundamental perspective, the Australian labor market remains strong, coupled with persistent inflationary pressures, the market widely expects the Reserve Bank of Australia to keep interest rates unchanged in October. Considering that the Fed's interest rate cut in October has almost become a foregone conclusion, the AUD/USD is likely to continue to rise.

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