Australian Dollar tests 0.7000 as RBA hike looms amid risk-off mood
The Australian Dollar began the week on a lower note against the US Dollar, at around 0.7000, as depicted in the AUD/USD daily chart, as investors brace for the Reserve Bank of Australia (RBA) monetary policy decision following optimistic US economic data.
The Australian Dollar started the week near 0.7000 against the US Dollar, as investors awaited the Reserve Bank of Australia's (RBA) monetary policy decision. The US tech stocks experienced a downturn following Apple's earnings report, leading to a risk-averse market sentiment and negatively impacting Asian equities. Speculation of a potential resolution to the US-Iran conflict uplifted the mood, with reports indicating that hardliners in Iran had granted President Pezeshkian the authority to engage in dialogue.
Meanwhile, US tech stocks saw a decline after Apple's earnings release, putting downward pressure on Asian equities. The ISM Manufacturing PMI rose from 54.5 to 55.5 in October, surpassing expectations of 54.6, although inflation-related components showed slight contraction. The probability of a 25-basis-point rate increase by the RBA dropped from 80% to 72%, as indicated by the CME FedWatch Tool.
The US Dollar Index (DXY), which gauges the dollar's performance against other currencies, experienced a slight decrease of 0.17% to 101.78. Falling oil prices, reflecting potential easing of inflationary pressures, contributed to the AUD's weakening against the US Dollar. The Australian Dollar traded around 0.6996 in the daily chart, remaining below the 0.7063 simple moving average cluster and trending bearishly near the 0.7117 uptrend-line break.
ANZ analysts predicted an upward revision of the unemployment rate and an increase in the RBA's inflation forecasts post-meeting.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
