AUDUSDAUD/USDOANDA:AUDUSDShavyfxhubAUDUSD IS LOOKING LONG AND THE FOLLOWING DATAS WE BACK MY CLAIMS. The current Governor of the Reserve Bank of Australia (RBA) is Michele Bullock, AU10Y=4.34-4.389% CLOSE OF FRIDAY RBA RATE =3.60% AUDUSD MARKET CLOSE EXCHANGE RATE =0.66022 The current Chair of the Federal Reserve is Jerome Powell. He has served as Chair since February 2018 and is expected to lead through at least mid-2026. Powell has been focused on balancing inflation control with economic growth amid evolving global conditions. the US 10-year Treasury yield is approximately 4.121%. This yield reflects market expectations for future inflation, economic growth, and Federal Reserve monetary policy. Current Federal Funds Rate The Federal Reserve’s target range for the federal funds rate as of September 2025 FFR= 4.00% - 4.25%. The Fed cut rates by 25 basis points in September 2025, marking the first easing since late 2024, with markets expecting possible additional cuts before year-end. The interest rate differential between Australia and the United States plays a significant role in the AUD/USD exchange rate and is closely related to the principles of Uncovered Interest Parity (UIP), which suggests that currencies with higher interest rates should depreciate over time relative to currencies with lower interest rates, aligning expectations with actual movements. Current Interest Rate Differential The Reserve Bank of Australia (RBA) maintains a cash rate of approximately 3.6% The Federal Reserve (Fed) has a target rate of about 4.0% to 4.25% The interest rate differential is roughly -0.4% to -0.65%, indicating that the U.S. rates are slightly higher than Australia's. UIP Context for AUD/USD According to UIP, the Australian dollar (AUD) should depreciate against the USD over time due to the higher U.S. interest rates, assuming risk neutrality. Despite this, the AUD has been relatively resilient, trading near 0.66020 close of market on The interest rate differential between Australia and the United States plays a significant role in the AUD/USD exchange rate and is closely related to the principles of Uncovered Interest Parity (UIP), which suggests that currencies with higher interest rates should depreciate over time relative to currencies with lower interest rates, aligning expectations with actual movements. Market Dynamics The interest rate differential influences carry trade strategies, where traders borrow in the lower-yielding currency (JPY, EUR) and invest in higher-yielding currencies (AUD, USD). Global risk appetite, economic data, and central bank signals can suppress or amplify pure UIP effects, which often do not fully materialize in the short term. the current economic outlook will give AUD a long advantage the dxy is down and us10y underperforms . #AUDUSD #AU10Y #US10Y #DXY