• AUD/USD held steady on Monday as the heightened prospect of lower U.S. interest rates weighed on the greenback.
• US employers added fewer jobs than anticipated in August, highlighting a slowdown in the labor market and increasing the likelihood that the Federal Reserve may reduce interest rates later this month.
• Following the report, investors increased expectations of a larger 50-basis-point rate cut from the Fed later this month, now assigning a 10% probability to such a move, up from zero just a week ago, according to the CME FedWatch tool.
•Meanwhile, stronger-than-expected domestic economic data has reduced the likelihood of a rate cut from the Reserve Bank of Australia this month and lowered the probability of a November easing to 80% from nearly 100%.
• Australia’s economic calendar is light this week, with focus on building permits, housing approvals, consumer confidence, inflation expectations, and a speech from an RBA official.
• Immediate resistance is located at 0.6590(Higher BB), any close above will push the pair towards 0.6619(23.6%fib)
• Support is seen at 0.6549(Daily low) and break below could take the pair towards 0.6515(SMA 20).
Recommendation: Good to buy around 0.6550 with stop loss of 0.6580 and target price of 0.6600
