AUD Drops Below 0.69 Against USD Amid Fading Fed Hike Bets
The Australian Dollar has weakened against the US Dollar, dropping by 0.26% as the greenback extends its gains for the fourth consecutive day. The AUD/USD is currently trading at 0.6928. The strengthening of the US Dollar comes despite fading bets on a Federal Reserve rate hike in October, with expectations now standing at just 30%. Meanwhile, Fed officials have emphasized patience ahead of the upcoming meeting on October 28.
Recent data from the United States has shown resilience in the economy, with manufacturing activity expanding and GDP growth coming in above expectations. However, jobless claims for the week ending September 26 were lower than anticipated, at 197K, while the unemployment rate is forecast to remain steady at 4.1% when the Nonfarm Payrolls report is released on Friday.
Technical analysis suggests that the AUD/USD may be due for a bounce, with the Relative Strength Index (14) in oversold territory and a series of upward-sloping support trend lines offering potential resistance to further declines.