AUD/USD steady around 0.7220 as the Asian session begins

The AUD/USD begins the Asian session on the right foot, is trading at 0.7220, posting a minimal gain of 0.01% at the time of writing. On the last trading day of September, market sentiment was downbeat, as major US stock indices recorded losses between 0.4% and 1.59%. 

The US Dollar Index (DXY) finished the day at 94.24, slightly down 0.02%, while the US 10-year Treasury yield dropped four basis points, sitting at 1.492%.

The Australian dollar depreciated for the fourth consecutive month against the greenback

In September, the Australian dollar depreciated 1.27% against the greenback for the fourth consecutive month. However, the price action of the last two month’s is trapped between the 0.7105-0.7478 range. 

The bond taper prospects weighed across all the US dollar counterparts. However, on Thursday, during the New York session, the US Initial Jobless Claims increased for the third consecutive week. The figure came at 362K, against 335K, foreseen by analysts. The data disappointed as we look forward to the Nonfarm Payrolls report in the following week.

The Federal Reserve Chairman Jerome Powell said one good employment report could convince the board that they have reached the bar needed to reduce the QE.

On Friday, the Australian economic docket, the Commonwealth Bank of Australia, and IHS Markit Economics will release the PMI for September, expected at 57.3. Later on, it will feature the Home Loans and Investment Lending for Homes, both reports related to August figures.

Meanwhile, in the US, Personal Consumption Expenditures and Personal Income for August will be revealed on Friday at 12:30GMT. Later during the day, the Markit and ISM Manufacturing PMIs could provide clues regarding production. Further, the UoM Consumer Sentiment will be disclosed.

ADDITIONAL KEY LEVELS TO WATCH