The AUD slides toward the 0.7000 level as mixed domestic data and stronger Chinese manufacturing weigh on the currency ahead of the Reserve Bank of Australia's policy meeting.

The Australian dollar posted one of the weakest performances among major currencies on Monday, slipping further against the US dollar. At the start of the European session the AUD/USD pair was around 0.7015, hugging the lower end of the two‑week range centred near 0.7000.

Mixed domestic data and Chinese manufacturing boost risk sentiment

• Australia’s S&P Global manufacturing PMI fell to 49.6 in October, a touch below the 49.7 forecast, signalling a deeper contraction.
• Building permits surged 5.1% in September, well ahead of the 2.1% consensus and reversing a 5.2% drop in August.
• China’s RantingDog manufacturing PMI registered 52.0 in October, only marginally lower than September’s 52.1 but comfortably above the 51.6 market expectation.

RBA policy decision in the spotlight

• Analysts at Rabobank expect the Reserve Bank of Australia to raise the cash rate by another 25 basis points on Tuesday, marking the fifth hike this year and taking the target to 4.85%.
• Deputy Governor Guy Landry (note: name from facts) warned that the inflation outlook has become "materially worse" and flagged possible further pressure from Middle‑East developments.
• The rate move, if confirmed, would support the AUD by widening the yield differential with the US dollar.

What traders are watching next

• Key support for the pair sits around 0.7000; a break below could test 0.6950.
• Resistance lies near 0.7050, aligning with the top of the recent range.
• The US ISM Services PMI, due Tuesday, may influence expectations for a Federal Reserve hike in December, while the outcome of the US mid‑term elections could affect risk sentiment and the dollar’s direction.

Related news

• DXY slides to 101.75 as Iran talks lift safe‑haven demand
• Usd edges lower as risk sentiment improves ahead of us midterm elections
• Aud/usd holds above 0.7000; 100‑day ema key ahead of rba decision
• Silver price edges higher at $50, eyes next resistance

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This article is compiled from international market news for information only. It is not investment advice.