The AUD/USD pair surged higher on Thursday, rising by 0.90% to 0.6890. The Australian Dollar strengthened after the release of positive economic data and the hawkish stance of the Reserve Bank of Australia (RBA) this week. Meanwhile, the US Dollar weakened as markets are hopping for a larger cut by the Federal Reserve (Fed) in November.

The RBA is expected to hold rates at 4.35%. Investors await key insights from the press conference to gauge AUD/USD movement and future rate cuts.

The Australian dollar strengthened against other major currencies in the late Asian session on Tuesday, after Australia's central bank left its interest rate unchanged at a 12-year high

The share of Australian borrowers in severe financial stress remains small with the vast majority still able to service their debts, the Reserve Bank said in a half-yearly review, while highlighting other areas of threat to the banking system including from China.