AUD/USD approaches 0.6300 after RBA decision, awaiting US data.

• AUD/USD marks a new 11-month low at 0.6300 as the RBA left interest rates unchanged.
• Markets are cautious, as the strength of the US economy has forced Fed officials to support a further rise in interest rates.
• Investors are awaiting US JOLTS job openings data, which is seen as little changed from the previous reading of 8.8 million.

The pair AUD/USD witnessed extreme selling pressure after the Reserve Bank of Australia (RBA) kept interest rates unchanged at 4.10%. The pair has updated its 11-month low at 0.6300 as investors see the policy divergence between the Federal Reserve (Fed) and the RBA intact.

As expected, RBA policymakers voted in favor of a stable interest rate policy, although they noted that further tightening of monetary policy would be appropriate. RBA Governor Michele Bullock kept room open for further policy tightening as inflation is more than double the desired rate of 2% and more interest rates could be needed to reduce inflation in the near future. reasonable.

Meanwhile, S&P 500 futures generated some losses in the London session, reflecting a further decline in risk appetite among market participants. The mood of the markets in general is one of caution, since the resistance of the US economy has forced those responsible for the Federal Reserve (Fed) to support a further increase in interest rates in the remainder of 2023.

Cleveland Fed President Loretta Mester said the Fed is not done raising interest rates. The Fed’s Mester said that further interest rate hikes are well needed this year and are required to remain high for a longer period. Interest rates should remain high for long enough until the central bank assesses the impact of the yet-to-be-done policy tightening.

The US Dollar Index (DXY) marks a new 11-month high at 107.25 amid multiple tailwinds and US 10-year Treasury yields rise to near 4.75%.

At the moment, investors are awaiting the US JOLTS job openings data for August, which will be published at 14:00 GMT. The number of job openings on the last business day of August is expected to remain unchanged at around 8.8 million.