- 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.
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.
Read More:
RBA Preview: Forecasts from eight major banks, no change in rates, hiking in November?
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
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD stays defensive below 1.1050, as US NFP data looms
EUR/USD stays defensive below1.1050 in the European morning on Friday. The pair lacks a clear directional impetus, as traders refrain from placing fresh bets ahead of the key US Nonfarm Payrolls data. The focus remains on ECB-speak as well.
GBP/USD recovers to near 1.3150 ahead of US NFP data
GBP/USD has recovered ground to near 1.3150 heading into the European opening bells on Friday. The further upside, however, appears elusive, as traders brace for the highly-anticipated US Nonfarm Payrolls data for fresh cues on the Fed interest rate outlook.
Gold: Will US Nonfarm Payrolls drive XAU/USD to fresh record highs?
Gold price extends a side trend below the key $2,670 resistance amid the Israel-Iran conflict. The US Dollar eases off six-week highs, as traders reposition ahead of the Nonfarm Payrolls data.
Nonfarm Payrolls set to grow moderately in September as markets mull bets of another big Fed rate cut
Economists expect the Nonfarm Payrolls report to show that the US economy added 140,000 jobs in September, following a job gain of 142,000 reported in August.
RBA widely expected to keep key interest rate unchanged amid persisting price pressures
The Reserve Bank of Australia is likely to continue bucking the trend adopted by major central banks of the dovish policy pivot, opting to maintain the policy for the seventh consecutive meeting on Tuesday.
Five best Forex brokers in 2024
VERIFIED Choosing the best Forex broker in 2024 requires careful consideration of certain essential factors. With the wide array of options available, it is crucial to find a broker that aligns with your trading style, experience level, and financial goals.