USD Strengthens vs G10 Peers; AUD/USD Bucks Trend Higher

The US dollar index gained 0.4% to 102.85, strengthening against most G10 currencies amid renewed haven demand and positioning ahead of key US data releases. EUR/USD fell 0.3% to 1.0780, while GBP/USD dropped 0.4% to 1.3365 as risk sentiment deteriorated. USD/JPY advanced 0.5% to 150.20, approaching the psychologically important 150.50 level. The sole exception was AUD/USD, which climbed 0.6% to 0.6845 following Australia's hot inflation print. Market participants are recalibrating Federal Reserve rate cut expectations, with futures now pricing just 25 basis points of easing through Q1 2025. Technical analysis shows the dollar index testing resistance at 103.00, a break above which could accelerate gains toward 103.50. The divergence in G10 performance reflects varying monetary policy outlooks, with the RBA's hawkish tilt contrasting with dovish expectations elsewhere.