AUD/USD falls back below 0.6400 ahead of RBA rate call

AUD/USD sees Monday declines as market risk appetite sours.
RBA rate call in the pipe for Tuesday.
Market sentiment set to be titled to the downside for NFP week.

Joshua Gibson FXStreet

The AUD/USD is washing back into familiar lows for Monday, trading into 0.6340 as broad-market sentiment turns risk-off.

The Aussie (AUD) is down 1.2% from Monday's early high of 0.6445 and off of the day's opening bids by around 65 pips. Market flows are broadly favoring the US Dollar (USD) as investors get spooked by fears of a global economic slowdown.

US ISM Purchasing Manager Index (PMI) figures came in mixed on Monday, limiting Greenback support to safe haven market flows. The US Manufacturing PMI ticked from the previous 47.6 to 49, but prices paid by manufacturers declined, printing at 43.8 versus the expected uptick to 48.6.

Tuesday brings the latest rate call from the Reserve Bank of Australia (RBA), which will be tabled by the RBA's new head, Governor Michele Bullock will be making her debut appearance as the head of the RBA, and investors are broadly anticipating the RBA holding rates steady at 4.1%.

Markets are still anticipating one more rate hike from the RBA, likely due in November, and investors will be keeping a close eye on the RBA rate statement for any clues about the Australian central bank's path forward.

The RBA rate call lands on Tuesday at 03:30 GMT.

RBA expected to keep rates unchanged – UOB

Mixed data docket for the week heading into NFP Friday

Australian Trade Balance figures land on Thursday, with the RBA's latest Financial Stability Review on Friday. Friday's action is set to be entirely overshadowed by US Non-Farm Payrolls. Forecasts see the NFP for September printing a decline from 187K to 163K.

AUD/USD technical outlook

The AUD/USD has fallen back into familiar consolidation for Monday, facing a clean rejection from the 34-day Exponential Moving Average (EMA) near 0.6450.

The 0.6350 region has become familiar territory for the Aussie, a level that has chained price action since August's slide into the price region.

The AUD/USD's long-term outlook is notably bearish, and a bullish reversal will quickly run into technical resistance from the 100-day Simple Moving Average (SMA) currently settling into 0.6575.

AUD/USD daily chart

AUD/USD technical levels

AUD/USD

Overview
Today last price	0.6366
Today Daily Change	-0.0067
Today Daily Change %	-1.04
Today daily open	0.6433

Trends
Daily SMA20	0.6418
Daily SMA50	0.6486
Daily SMA100	0.6588
Daily SMA200	0.6689

Levels
Previous Daily High	0.6501
Previous Daily Low	0.6418
Previous Weekly High	0.6501
Previous Weekly Low	0.6332
Previous Monthly High	0.6522
Previous Monthly Low	0.6332
Daily Fibonacci 38.2%	0.6469
Daily Fibonacci 61.8%	0.6449
Daily Pivot Point S1	0.64
Daily Pivot Point S2	0.6367
Daily Pivot Point S3	0.6317
Daily Pivot Point R1	0.6484
Daily Pivot Point R2	0.6534
Daily Pivot Point R3	0.6567

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

EUR/USD hovers around 1.1850 ahead of FOMC Minutes

EUR/USD stays on the back foot around 1.1850 in the European session on Wednesday, pressured by renewed US Dollar demand. Traders now look forward to the Minutes of the Fed's January monetary policy meeting for fresh signals on future rate cuts.

GBP/USD defends 1.3550 after UK inflation data

GBP/USD is holding above 1.3550 in Wednesday's European morning, little changed following the UK Consumer Price Index (CPI) data release. The UK inflation eased as expected in January, reaffirming bets for a March BoE interest rate cut, especially after Tuesday's weak employment report.

Gold: Is the $5,000 level back in sight?

Gold snaps a two-day downtrend, as recovery gathers traction toward $5,000 on Wednesday. The US Dollar recovers from the overnight sell-off as rebalancing trades resume ahead of Fed Minutes. The 38.2% Fib support holds on the daily chart for now. What does that mean for Gold?

Pi Network rally defies market pressure ahead of its first anniversary

Pi Network is trading above $0.1900 at press time on Wednesday, extending the weekly gains by nearly 8% so far. The steady recovery is supported by a short-term pause in mainnet migration, which reduces pressure on the PI token supply for Centralized Exchanges. The technical outlook focuses on the $0.1919 resistance as bullish momentum increases.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Top 3 Price Prediction: Bitcoin, Ethereum, and Ripple face downside risk as bears regain control

Bitcoin, Ethereum, and Ripple remain under pressure on Wednesday, with the broader trend still sideways. BTC is edging below $68,000, nearing the lower consolidating boundary, while ETH and XRP also declined slightly, approaching their key supports.