AUD/USD steadied around 0.6890 on 11/9/2026 as China’s October CPI came in at 0.7% YoY, supporting the Aussie dollar amid a softer US dollar.

The Australian dollar held its recent rebound on Monday, 11/9/2026, with AUD/USD hovering around 0.6890 after two days of losses. The move was anchored by China’s October consumer price index, which came in at 0.7% year‑on‑year, slightly below the market’s 0.8% expectation but still supportive of the Aussie currency.

China’s inflation snapshot and its impact on the Aussie dollar

China’s CPI for October rose 0.7% YoY after a 0.9% increase in September, while month‑on‑month inflation was flat at 0.0% versus 0.2% in the prior month. The producer price index also accelerated, jumping 5.7% YoY, outpacing the 5.3% forecast. Although the CPI miss was modest, the data reinforced the view that China’s demand remains resilient, which tends to buoy the renminbi and, by extension, the Australian dollar given the close trade ties between the two economies.

Traders interpreted the Chinese numbers as a sign that the country’s economy is not slipping into deflation, reducing risk‑off pressure on the AUD. In the Asian session, the pair managed to stay above the 0.6900 ceiling, a level that had acted as resistance earlier in the week, and settled just below it, indicating a limited but firm upside.

US dollar weakness and Fed expectations

At the same time, the US dollar retreated across major pairs. The CME FedWatch tool showed the probability of another 25‑basis‑point hike at the December 8‑9 FOMC meeting climbing to near 80%, yet market participants remain cautious. ABN Amro analysts noted that recent financial‑market stress has sparked a classic flight to quality, prompting investors to favour US Treasuries and question the need for further tightening.

Despite the rising hike odds, stronger US jobs data—non‑farm payrolls surged by 165,000 in October, well above the 65,000 consensus, and unemployment edged down to 4.1%—could revive the greenback. The market will watch the US CPI report due on Tuesday and the PPI on Friday for clues on whether inflationary pressures are persisting, which could influence the Fed’s policy trajectory and, consequently, the AUD/USD pair.

Read also: Gold rebounds above $4,100 despite strong US NFP data

Technical context and what traders should monitor

Technically, 0.6900 remains a key psychological barrier. A break above could open the path toward the 0.6950‑0.7000 range, while a slip back below 0.6850 may invite further downside toward the 0.6800 support zone. Yield differentials between Australian and US government bonds also play a role; a narrowing spread tends to favour the AUD, whereas rising US yields can pull the pair lower.

Looking ahead, traders will keep an eye on three main events: the US CPI release on Tuesday, the US PPI on Friday, and any fresh commentary from the Reserve Bank of Australia regarding its own monetary stance. Any surprise in these data points could shift risk sentiment and alter the AUD’s trajectory in the coming weeks.

• 0.6890 – AUD/USD level during Asian hours on 11/9/2026
• 0.7% YoY – China CPI for October 2026
• 5.7% YoY – China PPI for October 2026
• 165,000 – US non‑farm payrolls increase in October 2026
• 80% – Probability of a 25‑bp Fed hike at Dec 8‑9 FOMC

Frequently asked questions

Official data sources

• U.S. Bureau of Labor Statistics
• Reserve Bank of Australia
• Federal Reserve (Fed)

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This article is compiled from international market news for information only. It is not investment advice.