Australian Dollar Plunges as Nasdaq Sell-off Triggers Selling Pressure!

The Australian dollar weakened sharply against the US dollar during Thursday’s trading session (November 5, 2026), as negative sentiment swept through global stock markets, boosting demand for safe-haven currencies. The AUD/USD pair plummeted by more than 1% to 0.6931, having previously reached a high of 0.7024. This decline pushed the Australian dollar below the psychological 0.7000 level and the 0.6950 support level, raising the risk of further weakness toward the 0.6900 area ahead of the release of key US employment data.

Pressure on the Australian dollar intensified following a more than 5.52% drop in the Nasdaq 100 index, reflecting a massive sell-off in US technology stocks. Investor concerns emerged after the Democratic Party's victory in the US midterm elections, which increased the likelihood of tighter regulations on the artificial intelligence (AI) industry and a potential slowdown in data center investments. These conditions prompted investors to reduce their holdings of riskier assets, including currencies sensitive to global economic growth, such as the Australian dollar. This shift in sentiment also bolstered demand for the US dollar.

From a fundamental perspective, relatively strong US economic data provided additional support for the greenback. Initial jobless claims fell to 189,000 for the week ending October 31, coming in below the 196,000 forecast. Meanwhile, a report from Challenger indicated that the number of job cuts reached 43,994 in October—an increase of approximately 2% from the previous month. Federal Reserve officials Beth Hammack and Thomas Barkin also emphasized that inflationary pressures remain a concern, necessitating a cautious approach to interest rate policy. Nevertheless, market expectations for a 25-basis-point interest rate hike by the Federal Reserve in December have fallen to 66%, down from approximately 82% the previous day.

Meanwhile, in Australia, policy signals from the Reserve Bank of Australia (RBA) have dampened the appeal of the Australian dollar. Investors increasingly anticipate that the central bank will keep its benchmark interest rate unchanged, with no further hikes expected at least until the policy meeting on June 22, 2027. The divergence in monetary policy outlooks between the RBA and the Federal Reserve is one of the factors weighing on the AUD/USD pair. Market focus has now shifted toward the Non-Farm Payrolls (NFP) report, the U.S. unemployment rate, and the University of Michigan’s consumer sentiment index, all of which are scheduled for release on Friday (November 6, 2026). These data points have the potential to influence interest rate expectations and determine the future direction of the U.S. dollar.