AUD/USD Plunges Ahead of RBA Rate Decision

The AUD/USD exchange rate has been declining for three consecutive weeks ahead of the Reserve Bank of Australia's (RBA) interest rate decision on Tuesday. The pair dropped to its lowest level since August 3 at 0.7023, a nearly 3% decrease from its highest point this month.

Australia's economy is performing relatively well, with 39,500 jobs added last month, exceeding the median estimate of 20,000. However, inflation remains above the 2% target, and most economists believe the RBA will hike interest rates to 4.65%, its fourth rate hike this year.

The daily chart indicates a bearish trend for the AUD/USD pair, with it moving below the 50-day Exponential Moving Average (EMA) and approaching the lower side of the Bollinger Bands. The Relative Strength Index (RSI) is nearing the oversold level of 30.