The dollar slips despite strong US data, while traders eye mid‑term elections, JOLTS and the upcoming RBA rate move.

The US dollar eased on Tuesday, with the DXY down 0.24% to 101.72, even as October’s ISM Manufacturing PMI beat expectations. Market focus shifted from the upbeat data to geopolitical developments, including a possible breakthrough in US‑Iran talks, and a packed US economic calendar that features the mid‑term elections, Factory Orders and the JOLTS report.

Major pairs and eurozone outlook

• EUR/USD gained 0.33% and sits just below the 1.1200 level despite mixed PMI readings in the euro area; Spain and Germany posted solid numbers while Italy slipped below forecasts.
• GBP/USD hovered around 1.3400, reaching a high of 1.3448, but failed to sustain the rally. Market pricing still implies a near‑certain BoE rate hike on Thursday, according to LSEG data.
• USD/JPY moved sideways after the Bank of Japan’s surprise dovish tone last week, with money markets now looking for a possible rate rise at the December meeting.

Australian dollar and commodity dynamics

• AUD/USD fell to 0.7000 ahead of the Reserve Bank of Australia’s rate decision at 03:30 GMT. Traders are betting on a 25‑basis‑point hike with an 85% probability, and will listen to Governor Bullock’s press conference for clues.
• WTI crude slid more than 6.6% to $96.11 as reports suggested Washington and Tehran were moving toward a diplomatic resolution, easing safe‑haven demand for the dollar.
• Gold rose over 1.5% to $3,964 per ounce, buoyed by the weaker dollar and falling US Treasury yields, though the broader downtrend remains intact unless the price breaks the $4,000 barrier.

What traders are watching next

• US mid‑term election outcomes and the JOLTS release for clues on labour market strength.
• RBA’s interest‑rate decision and accompanying policy statement for direction on the Aussie.
• Swiss CPI data for October, which could influence the SNB’s stance on its ultra‑low‑rate policy.

Related news

• Australian dollar slips ahead of RBA rate rise and US midterms
• Australian dollar largely priced for RBA hike, but disappointment risk remains
• Australian dollar may not sustain gains after RBA hike, says Rabobank
• Evening market overview, 2 November 2026

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