AUD Slides to One-Week Low Ahead of Jobs Data Release
The Australian Dollar (AUD) has weakened against the US Dollar (USD), sliding to a one-week low of below 0.7100 on Wednesday ahead of the release of jobs data on Thursday.
The decline was attributed to a combination of factors, including disappointing flash PMIs that showed a slowdown in services activity and contraction in the manufacturing sector, which tempered market expectations of a follow-through move by the Reserve Bank of Australia (RBA) after the expected 25 basis points rate hike next week.
The prevailing US Dollar buying interest also exerted additional downward pressure on the AUD/USD pair, as the USD Index (DXY), which tracks the Greenback against a basket of currencies, advanced to a fresh high since July 30 in the wake of the US Federal Reserve's hawkish outlook, signaling one more rate hike this year.
Traders may refrain from placing aggressive bets ahead of the release of the Australian jobs report on Thursday and the crucial Trump-Xi meeting. A convincing break below the 100-day Simple Moving Average (SMA) would expose a deeper protection at the 50.0% retracement near 0.7051 and the 61.8% level at 0.7007.