- AUD/USD prints a fresh 10-month low due to the resilient US Dollar.
- A power-pack action is expected in equities as the US markets will open after an extended weekend.
- IMF Gopinath warned that external conditions had become more challenging for emerging markets due to tightening financial conditions.
The AUD/USD pair refreshes a 10-month low near 0.6360 ahead of the New York opening session. The Aussie asset witnessed an immense sell-off after the Reserve Bank of Australia (RBA) kept interest rates unchanged at 4.10%. RBA policymakers kept doors open for further policy tightening and warned that inflation is still too high and will remain so for some time.
The S&P500 is expected to open on a negative note, considering bearish cues from overnight futures. A power-pack action is expected in US equities as US markets will open after an extended weekend. On Monday, US markets were closed on account of Labor Day. The market tone is negative as investors worry about global growth knowing that western central banks will keep interest rates higher for a longer period.
IMF First Deputy Managing Director Gita Gopinath warned that external conditions had become more challenging for emerging markets due to rising geopolitical fragmentation, tightening financial conditions, and the growing costs of climate change.
Global market mood turned bearish after the Caixin Manufacturing PMI for August dropped significantly to 51.8 vs. the former release of 54.1.
The US Dollar Index (DXY) faces nominal selling pressure after printing a fresh five-month high near 104.84 as global economic activities remain downbeat, facing pressure of aggressive policy tightening by central banks.
Going forward, the US Dollar will dance to the tune of the ISM Services PMI for August. The PMI data is expected to remain broadly unchanged at 52.7.
For further action in the Australian Dollar, investors will keenly watch the Q2 Gross Domestic Product (GDP) data. As per expectations, the Australian economy grew at a 0.3% pace vs. a 0.2% pace, being recorded for Q1. On an annualized basis, the Australian GDP is seen expanding at a slower pace of 1.7% vs. the former pace of 2.3%.
|Today last price||0.6374|
|Today Daily Change||-0.0088|
|Today Daily Change %||-1.36|
|Today daily open||0.6462|
|Previous Daily High||0.648|
|Previous Daily Low||0.6445|
|Previous Weekly High||0.6522|
|Previous Weekly Low||0.6401|
|Previous Monthly High||0.6724|
|Previous Monthly Low||0.6364|
|Daily Fibonacci 38.2%||0.6467|
|Daily Fibonacci 61.8%||0.6458|
|Daily Pivot Point S1||0.6444|
|Daily Pivot Point S2||0.6427|
|Daily Pivot Point S3||0.6409|
|Daily Pivot Point R1||0.648|
|Daily Pivot Point R2||0.6498|
|Daily Pivot Point R3||0.6515|
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.