AUD/USD jumps 0.40%, looks to snap six-day losing trend

AUD/USD ticks higher as Westpac pushes out the RBA rate cut forecast.
The US stock index futures rise, lending support to the AUD.

Omkar Godbole FXStreet Contributor

The Aussie dollar bears are taking a breather on Monday, allowing a bounce in AUD/USD, with an influential economist pushing out his rate cut forecast to November from October.

The currency pair is currently trading at 0.7050, representing a 0.40% gain on the day. The pair fell by nearly 0.30% on Friday to 0.7006 – its sixth straight consecutive decline.

RBA to cut rates in November

Westpac, one of the big four Australian banks, expects the Reserve Bank of Australia (RBA) to cut the overnight cash rate (benchmark interest rate) to a new record low of 0.1% from the current 0.25% in November.

Until last week, Westpac's economist Bill Evans was confident that the rate cut would happen at the Oct. 6 meeting.

The central bank is also expected to reduce the three-year bond yield target to 0.1% from 0.25%, the Term Funding Facility rate to 0.1% and the RBA rate on Exchange Settlement balances to 0.01%.

Apart from Westpac's decision to push out the rate cut forecast, the 0.30 gain in the S&P 500 futures could be drawing bids for the AUD.

Significant gains, however, may remain elusive, courtesy of the resurgence of coronavirus in Europe and caution ahead of the first debate between the US President Donald Trump and rival Joe Biden on Tuesday.

Technical levels

AUD/USD

Overview
Today last price	0.7050
Today Daily Change	0.0018
Today Daily Change %	0.40
Today daily open	0.703

Trends
Daily SMA20	0.725
Daily SMA50	0.7203
Daily SMA100	0.7007
Daily SMA200	0.6774

Levels
Previous Daily High	0.7087
Previous Daily Low	0.7004
Previous Weekly High	0.7325
Previous Weekly Low	0.7004
Previous Monthly High	0.7416
Previous Monthly Low	0.7076
Daily Fibonacci 38.2%	0.7036
Daily Fibonacci 61.8%	0.7055
Daily Pivot Point S1	0.6994
Daily Pivot Point S2	0.6958
Daily Pivot Point S3	0.6912
Daily Pivot Point R1	0.7077
Daily Pivot Point R2	0.7123
Daily Pivot Point R3	0.7159

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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