AUD/USD remains on the defensive above the 0.6300 mark amid the geopolitical tensions

AUD/USD holds above the 0.6300 psychological support in early Monday.
The escalating geopolitical tension, downbeat Chinese CPI data weigh on the Aussie Dollar.
US Michigan Consumer Sentiment Index is softer than expected; inflation expectations for one year rose from 3.2% to 3.8%.

Lallalit Srijandorn FXStreet

The AUD/USD pair remains on the defensive during the early Asian session on Monday. Risk sentiment will dominate the pair ahead of the US Retail Sales and the Reserve Bank of Australia (RBA) Meeting Minutes on Tuesday. The pair currently trades near 0.6305, up 0.15% on the day.

On Friday, the National Bureau of Statistics of China revealed that the Chinese Consumer Price Index (CPI) for September came in at 0% YoY from the previous reading of 0.1%, worse than the market consensus of 0.2%. The Producer Price Index fell to 2.5% from a 3% drop in August, missing the expectation of a 2.4% decline. The Chinese readings show that the economy is still struggling despite the latest government stimulus plan to boost the nation in meeting its 5% growth target.

Furthermore, the escalating geopolitical tension in the Middle East continues to exert pressure on the risk-perceived currencies, like the Aussie Dollar (AUD), and acts as a headwind for the AUD/USD pair.

On the USD’s front, the upbeat US inflation report has prompted investors to price in a possible rate rise by the Federal Reserve (Fed). The US Consumer Price Index (CPI) annually and monthly for September came in at 3.7% and 0.4%, respectively. Both figures exceeded the market expectations.

On Friday, the preliminary US Michigan Consumer Sentiment Index for October eased to 63.0 from the previous reading of 68.1, worse than expected of 67.4. Meanwhile, Inflation expectations for one year rose from 3.2% to 3.8%, while for five years jumped to 3% from 2.8%. In the meantime, the US Dollar (USD) remains to benefit from the safe-haven flow amid the rising geopolitical tension between Israel and Palestine.

Looking ahead, geopolitical tension remained the focus for the pair. The US Retail Sales for September will be due on Tuesday, with the figure expected to rise 0.2%. On the Australian docket, the Reserve Bank of Australia (RBA) Meeting Minutes, RBA Bullock’s speech and Australian employment data will be released this week. Traders will take cues from these figures and find the trading opportunities around the AUD/USD pair.

AUD/USD

Overview
Today last price	0.6305
Today Daily Change	0.0009
Today Daily Change %	0.14
Today daily open	0.6296

Trends
Daily SMA20	0.6392
Daily SMA50	0.6425
Daily SMA100	0.6563
Daily SMA200	0.6669

Levels
Previous Daily High	0.6334
Previous Daily Low	0.6286
Previous Weekly High	0.6445
Previous Weekly Low	0.6286
Previous Monthly High	0.6522
Previous Monthly Low	0.6332
Daily Fibonacci 38.2%	0.6305
Daily Fibonacci 61.8%	0.6316
Daily Pivot Point S1	0.6277
Daily Pivot Point S2	0.6257
Daily Pivot Point S3	0.6228
Daily Pivot Point R1	0.6325
Daily Pivot Point R2	0.6354
Daily Pivot Point R3	0.6373

Author

Lallalit Srijandorn

FXStreet

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

AUD/USD remains offered; supported by 0.7100

AUD/USD adds to Monday’s retracement, although it manages well to keep the trade above the 0.7100 yardstick ahead of the opening bell in Asia. Once again, the softer tone in spot follows decent gains in the Greenback amid rising bets for a Fed rate hike on Wednesday.

USD/JPY extends gains toward 155.00 amid USD resurgence

USD/JPY keeps pushing higher toward 155.00 early Tuesday, looking for more upside, as traders await the FOMC and BoJ meetings this week. Meanwhile, Fed rate-hike bets and oil-driven inflation risks keep US bond yields near multi-year highs, supporting the US Dollar and the pair. That said, a more hawkish repricing of the BoJ normalization path might continue to underpin the Japanese Yen and could limit USD/JPY's upside. .

Gold set to fall toward $4,000 as Warsh faces a Fed rate-hike dilemma

As the Federal Reserve monetary policy announcement approaches and the Middle East war intensifies, the US Dollar resumes its advance. Gold price posted a tepid attempt to recover its shine in early August, but with renewed USD demand, the bright metal faltered miserably and is now closer to the $4,000 mark than the encouraging $4,700 peak from a month ago.

Bitcoin pulls back as valuation ceilings hold while XAU weakness persists

Bitcoin (BTC) corrects alongside the broader cryptocurrency market on Tuesday as selling persists ahead of the United States (US) Federal Reserve (Fed) monetary policy decision. Market participants expect the central bank to raise interest rates to 3.75%-4.00% on Wednesday, potentially weighing on risk assets.

How Japan became the World's Banker and why that era may be ending

Japan's ultra-low interest rates helped finance trillions of dollars in global investments for more than a decade, making the Japanese Yen one of the world’s cheapest sources of funding. With the Bank of Japan expected to tighten policy again this week, that advantage may be entering a new phase. While most major economies raised interest rates, Japan remained the world's outlier.

Venezuela’s 65-billion-barrel Oil deal could reshape America’s inflation fight

The United States (US) has secured unprecedented access to part of Venezuela’s vast Oil reserves. The timing is particularly significant as the war with Iran is disrupting Middle Eastern supplies, keeping energy prices elevated and reviving concerns about inflation.