FxWirePro: AUD/USD eases as shutdown jitters fail to rattle markets

•  AUD/USD eased on Friday as the U.S. dollar found some footing as markets looked past U.S. shutdown.

• Markets appear unfazed by the 15th U.S. government shutdown since 1981, even as it disrupts research, financial supervision, and postpones vital data releases, including Friday’s payrolls.

• Markets have shown little reaction, partly because past shutdowns have typically had only limited effects on growth and asset performance.

•The government shutdown has created a gap in key economic data, including September’s closely watched monthly jobs report, originally scheduled for Friday.

• Australian dollar’s recent ascent was supported by the Reserve Bank of Australia’s more hawkish outlook, highlighting inflation pressures exceeding prior forecasts.

•Futures now price in roughly a 45% probability of a 25-basis-point cut to the 3.60% cash rate at the RBA’s next meeting on November 4, down from nearly 100% a month ago.

•  Immediate resistance is located at 0.6608(SMA20), any close above will push the pair towards 0.6686(23.6%fib)

•  Support is seen at 0.6532(38.2%fib) and break below could take the pair towards 0.6532(38.2%fib).

 Recommendation: Good to buy   around 0.6580 with stop loss of 0.6510 and target price of 0.6660