AUD/USD Teeters on 0.70 as RBA Meeting and Inflation Data Loom
The Australian dollar is facing a crucial week ahead of the Reserve Bank of Australia (RBA) meeting and release of key inflation data. The AUD/USD has been in decline for three consecutive weeks, with prices hovering just shy of 0.70.
Last week's RBA commentary indicated a hawkish stance, making a rate hike tomorrow all but certain. However, the recent employment report revealed a more nuanced picture, with part-time jobs driving growth while full-time positions declined. This has added uncertainty to expectations surrounding the RBA's decision.
In the US, Federal Reserve officials have adopted a hawkish tone, and September's flash PMI indicates business activity reaching a five-year high. The US dollar index has surged to a two-month peak, pushing AUD/USD down further.