FxWirePro: AUD/USD falls as hawkish Fed signals underpin dollar 
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Market Roundup
• Japan Corporate Services Price Index (CSPI) (YoY) 3.7% ,3.6%forecast, 3.6% previous
•Chinese Industrial profit YTD (Aug) 15.7%,17.6% previous
Looking Ahead Economic Data (GMT)
• 08:00 Italian Trade Balance Non-EU (Aug) 2.55B previous
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Currency Forecast
Looking Ahead Events And Other Releases (GMT)
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Currency Forecast
EUR/USD : The euro edged lower on Monday as investors looked ahead to a data-heavy week for fresh clues on inflation and the outlook for central-bank policy.Market attention shifts toward a series of U.S. economic releases, with the PCE inflation index due Wednesday and non-farm payrolls scheduled for Friday. Both reports will be closely watched for evidence of persistent price pressures and the resilience of the U.S. economy, which could influence expectations for the Federal Reserve’s next policy moves. Investors will closely monitor this week’s U.S. data for signs that inflation remains elevated and whether economic growth is strong enough to support a tighter monetary-policy stance.Rising energy supply risks have added to concerns over inflation, while resilient U.S. economic fundamentals have encouraged traders to adopt a more hawkish view of the Federal Reserve. Expectations for tighter policy have provided support to the U.S. dollar and kept pressure on the euro. Immediate resistance can be seen at 1.1450(38.2%fib), an upside break can trigger rise towards 1.1539(50%fib).On the downside, immediate support is seen at 1.1348(23.6%fib), a break below could take the pair towards 1.1308(Lower BB).
GBP/USD: Sterling edged higher on Monday but remained close to a three-month low after Bank of England Governor Andrew Bailey reiterated the possibility of higher interest rates. Bailey said on Friday that persistently elevated energy prices could make it harder for the central bank to keep rates unchanged, reinforcing its recent shift toward a more hawkish policy stance.The comments come at a challenging time for Prime Minister Andy Burnham and Finance Minister John Healey, who are seeking to ease cost-of-living pressures while maintaining a positive tone on the economy ahead of the October 28 budget.Unlike the U.S. Federal Reserve and the European Central Bank, the Bank of England has not raised interest rates since the start of the Iran war, leaving markets focused on the prospect of further policy tightening. Immediate resistance can be seen at 1.3347(Daily high), an upside break can trigger rise towards 1.3397(50%fib).On the downside, immediate support is seen at 1.3227(Daily low), a break below could take the pair towards1.3178(23.6%fib).
AUD/USD: The Australian dollar edged higher against the U.S. dollar on Monday as market attention turned to Tuesday’s Reserve Bank of Australia policy meeting.The RBA is widely expected to raise interest rates by 25 basis points at its September 29 meeting, with persistent inflation pressures supporting a hawkish policy outlook. Beyond the rate decision, investors will closely assess the central bank’s guidance on inflation, economic growth and the future path of monetary policy.Markets are currently pricing in around 40 basis points of additional tightening following Tuesday’s decision. Attention will then shift to Australia’s August CPI report due Wednesday, with a Reuters poll forecasting a 0.4% monthly increase and annual inflation of 4.0%.Immediate resistance can be seen at 0.7064 (50%fib), an upside break can trigger rise towards 0.7134(50%fib).On the downside, immediate support is seen at 0.7015 (38.2%fib), a break below could take the pair towards 0.6973(Lower BB)
USD /JPY : The U.S. dollar edged higher in Monday as yen weakened after Bank of Japan meeting minutes .Minutes from the Bank of Japan’s July meeting showed that many policymakers were increasingly concerned about rising inflation risks, with some favoring faster rate hikes, strengthening the case for further increases in borrowing costs.Minutes showed on Monday that many members of the nine-member BOJ board believed the central bank was gradually shifting its policy focus toward anchoring underlying inflation around its 2% target amid rising inflation risks.The July meeting minutes highlighted growing concern among policymakers over mounting inflation risks, with some members warning that rising wholesale prices could increasingly feed through into broader consumer price pressures. Immediate resistance can be seen at 158.00(Psychological level), an upside break can trigger rise towards 158.48(50%fib).On the downside, immediate support is seen at 156.46(SMA 20) a break below could take the pair towards 156.13(61.8%fib).
Equities Recap
Asian shares traded mostly lower on Monday as renewed gains in oil prices, fueled by uncertainty over U.S.-Iran talks, weighed on sentiment and kept bonds under pressure ahead of key economic data..
China A50 was down by 2.09% , South Korea’s KOSPI was down at 2.70%, Nikkei was down at 0.69%
Commodities Recap
Gold dropped over 2% on Monday as a surge in oil prices raised fears of renewed inflation and strengthened bets on additional Fed interest-rate increases.
Spot gold was down 2.7% at $4,15385 per ounce, hitting its lowest since early August. US gold futures fell 2.7% to $4,204.30.
Brent crude oil rebounded more than 3% on Monday after US President Donald Trump rejected a peace deal from Iran to resolve their conflict and reopen the Strait of Hormuz, keeping tensions in the Middle East elevated.
Brent crude futures rose $3.43, or 3.29%, to $107.75 a barrel at 0540 GMT, while US West Texas Intermediate crude was at $94.55 a barrel, up $2.14, or 2.32%.
