AUD / USD falls to fresh 18-day lows near 0.7050

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The pair AUD/USD it fell sharply during Asian trading hours on Thursday and extended its daily decline to a fresh 18-day low of 0.7056 during the US session. At time of writing, the pair was down 1.37% on the day at 0.7064.

Investors begin pricing an RBA rate cut

Earlier in the day, the Governor of the Reserve Bank of Australia, Phillip Lowe, noted that the bank was considering lowering the policy rate to 0.1% from 0.25%. Following this development, Bloomberg reported that there was a 75% chance of a rate cut from the RBA in November and it caused the AUD to lose steam against its rivals.

Meanwhile, data from Australia showed that the Unemployment Rate in September rose to 6.9% from 6.8% in August with the Employment Change reaching -29,500 for that period.

On the other hand, the uncertainty surrounding Brexit and waning hopes for a coronavirus relief bill in the US ahead of the election continue to weigh on market sentiment and help the dollar gain strength as a safe haven.

The US Dollar Index, which closed in negative territory on Wednesday, posted an impressive rally in the second half of the day and was last seen gaining 0.53% to 93.90.

The US Department of Labor announced Thursday that initial weekly jobless claims rose to 898,000 in the week ending October 10. In addition, the Empire State Manufacturing Index for New York in October fell to 10.5 and disappointed the market expectation of 15.

Credits: Forex Street

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