Australian Dollar Climbs to 0.6981 Amid Fed Minutes Anticipation
The Australian Dollar (AUD) has extended its rally for a third consecutive day, gaining 0.14% on Tuesday. The AUD/USD pair is trading at 0.6981, after hitting a low of 0.6961, as the US Dollar shows erratic behavior ahead of the Federal Reserve's September meeting minutes release on October 7.
Wall Street ended Tuesday in the green, with the S&P 500 reaching a record high. Oil prices edged lower, dragging down the Greenback and US Treasury yields. However, France’s fiscal turmoil could push rates higher. The US trade deficit widened to $-105.6 billion in August, up from $-92.8 billion in July, driven by increased imports of crude oil, non-monetary gold, and capital goods. Other data showed the ADP Employment Change 4-week average at 23.75K, indicating a solid labor market.
In Australia, the ANZ-Indeed Australian Job Ads increased 2.2% month-over-month in September, pushing the series 12.5% higher over the year. Traders are eyeing the University of Melbourne's Consumer Inflation Expectations for October 7. Despite the rally, expectations suggest the AUD/USD may continue to trend lower, as Reserve Bank of Australia (RBA) Governor Bullock stated that three rate increases could be enough to tame inflation. In contrast, the Federal Reserve is expected to raise rates at least once by the end of the year.
Technically, the AUD/USD pair trades around 0.6980, maintaining a bearish near-term bias. The pair holds beneath the Moving Average Triple SMA zone near 0.7090, with immediate support at 0.6897. The 14-period Relative Strength Index (RSI) hovers near 37, indicating persistent downside pressure.