AUD Loses Ground Against USD as Fed Hike Bets Grow Amid Trade Tensions
The Australian Dollar (AUD) is experiencing mild losses against the US dollar (USD), trading around 0.7120 in the early Asian session on Monday.
This comes as the US Federal Reserve (Fed) raised interest rates by a quarter point, its first hike in three years, to curb inflation. The Fed's decision has led markets to price in nearly a 56.5% chance of another rate hike when the Fed meets next in October.
Despite the AUD/USD pair's recent decline, strategists at UOB Group maintain their '1-3 weeks view' on the currency, citing short-term oversold conditions and resistance at 0.7140 as key indicators.
The upcoming Australian jobs report, scheduled for Thursday, is also a crucial factor in determining the AUD/USD pair's trajectory. The Unemployment Rate is expected to remain unchanged at 4.5% in August, while the number of employed people is projected to rise by 20,000 during the same period.
Additionally, the upcoming meeting between US President Donald Trump and Chinese President Xi Jinping will be closely watched by markets, as it may have implications for global trade policies and currency values.