AUD/USD breaks below 0.6500 ahead of RBA Minutes
AUD/USD faces increasing selling pressure and breaches below the key 0.6500 support ahead of the opening bell in Asia. The pair’s drop to multi-day lows comes in response to the firmer tone in the Greenback and the generalised risk-off mood. Moving forward, investors are expected to closely follow the release of the RBA Minutes.
The Australian Dollar (AUD) trades well on the back foot in quite a negative start to the new trading week, with AUD/USD retreating to the 0.6500 neighbourhood in a context dominated by the resumption of the buying interest around the US Dollar (USD).
In the meantime, the US Dollar Index (DXY) manages to add to Friday’s marginal uptick and flirts with three-day highs in the 99.50-99.60 range.
Australia’s economy: Holding on for now
Australia’s economy isn’t exactly roaring, but it’s holding up better than many expected. The October PMIs painted a mixed picture: manufacturing slipped back below the 50 line to 49.7 (from 51.4), while services edged up to 53.1 (from 52.4).
Retail Sales were up 1.2% in June, and the September trade surplus widened to A$3.938 billion. Business investment improved in Q2, helping GDP grow 0.6% QoQ and 1.1% YoY, nothing flashy, but steady enough.
The labour market added to the sense of resilience: October’s Unemployment Rate dipped to 4.3% (from 4.5%), and Employment Change surprised on the upside at +42.2K. After a softer run previously, this rebound hints that conditions might be firming again.
Source: Fxstreet
