AUD/USD Dives Ahead of RBA Interest Rate Decision
The AUD/USD exchange rate has been on a downward trend for three consecutive weeks as traders await the Reserve Bank of Australia's (RBA) interest rate decision. The pair dropped to 0.7023, its lowest level since August 3, and is down by nearly 3% from its highest level this month.
The Australian economy added 39,500 jobs last month, higher than the median estimate of 20,000. This data suggests that the economy is doing well, even as the unemployment rate rose slightly to 4.6%. Australia's inflation remains above the 2% target, with a report expected to show it rose 4.10% in August from 3.50% in July.
Most economists believe that the RBA will hike interest rates at this meeting, bringing them to 4.65% for their fourth rate hike of the year. The AUD/USD pair's reaction to other key events this week will also be watched closely, including Federal Reserve officials' comments and consumer confidence reports.
Technical analysis indicates a bearish outlook with the next key target being 0.6900 if it drops below the support at 0.7000.