The Australian dollar gave up early gains to trade broadly flat near 0.6970 against the US dollar in Monday’s European session, as the greenback recovered with markets turning cautious ahead of the US Consumer Price Index (CPI) for September due on Wednesday. The US Dollar Index (DXY) was little changed around 102.20, while attention stayed on how the CPI print could affect Federal Reserve rate expectations. Pricing in the CME FedWatch tool pointed to expectations that the Fed will keep interest rates unchanged at its meeting later this month, and the week’s other key event for AUD/USD is Australia’s September employment report on Thursday.
Technical Overview
On the charts, AUD/USD was at 0.6972 and retained a bearish near-term tone while holding below the 20-day exponential moving average (EMA) at 0.7015. Momentum indicators also leaned soft, with the Relative Strength Index (RSI) near 39. The 20-day EMA at 0.7015 remains the first upside hurdle, while support sits near the 1 October low around 0.6900 and the 30 June low at 0.6865.
