Canadian Dollar Faces Resistance; Australian Dollar Also Retreats—Will the U.S. Dollar Change Direction?

Canadian Dollar Faces Resistance; Australian Dollar Also Retreats—Will the U.S. Dollar Change Direction?

03.11.2026 New

In the U.S. currency market the previous day, although crude oil prices plummeted on expectations of diplomatic talks between the U.S. and Iran, the Canadian dollar remained largely flat against the U.S. dollar, supported by hopes for trade talks with the U.S.The USD/CAD pair traded around 1.3973 Canadian dollars, as lower crude oil prices and expectations for trade talks played out in a tug-of-war. Meanwhile, the yield on the 10-year U.S. Treasury note fell to around 4.9%, and the USD/JPY pair traded within a range of 157.46 to 158.00 yen on the 2nd.On the 3rd, the dollar’s direction remained uncertain ahead of the U.S. midterm elections, and caution toward U.S. tech stocks—which has persisted since last week—continued to weigh on the foreign exchange market.

Among European currencies, the euro rebounded against the dollar as falling oil prices eased inflation concerns. On the 2nd, the euro-dollar exchange rate traded within a range of $1.1152 to $1.1237 and closed near $1.1187.In European stock markets, buying driven by the decline in crude oil prices pushed the STOXX 600 up 0.42%. Meanwhile, in the UK, the manufacturing PMI improved, and the pound traded around $1.3401 against the dollar during Asian trading hours on the 3rd.With the Bank of England’s policy rate decision scheduled for this week, market participants are likely to focus on the divergence in interest rate outlooks for the euro and the pound.

In today’s economic news, the Reserve Bank of Australia raised its policy rate to 4.85% at 12:30. Although the rate hike was in line with expectations, the vote was split 6 to 3, causing the Australian dollar to briefly fall to $0.6974.At 4:30 p.m., Switzerland’s October CPI will be released, with a month-over-month change of 0.0% expected.In the U.S., September JOLTS job openings and new manufacturing orders will be released at 24:00, with forecasts of 7.162 million and a 1.2% month-over-month increase, respectively. With the results of the U.S. midterm elections still pending, we will be watching for the reaction of the U.S. dollar and European currencies.