FxWirePro: AUD/USD falls as hawkish Fed signals underpin dollar 
Add as a preferred source on Google
Market Roundup
•Italy Services PMI (Sep) 51.7, 54.6 forecast, 55.2 previous
•Italy Composite PMI (Sep) 51.0, 53.6 previous
•France Services PMI (Sep) 51.2, 51.4 forecast, 48.0 previous
•France Composite PMI (Sep) 51.1, 51.2 forecast, 48.5 previous
•Germany Services PMI (Sep) 52.9, 52.9 forecast, 49.7 previous
•Germany Composite PMI (Sep) 53.8, 53.8 forecast, 51.8 previous
•Eurozone Services PMI (Sep) 53.0, 53.0 forecast, 51.6 previous
•Eurozone Composite PMI (Sep) 53.1, 53.1 forecast, 52.0 previous
•UK Composite PMI (Sep) 52.0, 51.7 forecast, 52.5 previous
•UK Services PMI (Sep) 52.1, 51.7 forecast, 52.5 previous
•Eurozone Sentix Investor Confidence (Oct) 2.7, 4.5 forecast, 5.1 previous
•Eurozone PPI (Aug) 1.9%, 1.9% forecast, 1.6% previous
Looking Ahead Economic Data (GMT)
•13:45 US S&P Global Services PMI (Sep) 58.7 forecast, 56.5 previous
•13:45 US S&P Global Composite PMI (Sep) 58.4 forecast, 56.0 previous
•14:00 US ISM Non-Manufacturing PMI (Sep) 55.1 forecast, 55.4 previous
•14:00 US ISM Non-Manufacturing Prices (Sep) 72.6 previous
•14:00 US ISM Non-Manufacturing Employment (Sep) 47.8 previous
•14:00 US ISM Non-Manufacturing New Orders (Sep) 60.9 previous
•14:00 US ISM Non-Manufacturing Business Activity (Sep) 61.7 previous
•14:00 US CB Employment Trends Index (Sep) 108.53 previous
•15:30 US 3-Month Bill Auction 4.110% previous
•15:30 US 6-Month Bill Auction 4.285% previous
Looking Ahead Events And Other Releases (GMT)
• No Events Ahead
Currency Forecast
EUR/USD : The euro fell to a 17-month low against the dollar on Monday as concerns over France’s fiscal outlook and last week’s sharp bond sell-off revived fears of renewed euro zone debt tensions.French government bonds remained under pressure amid expectations of higher interest rates and growing political uncertainty ahead of the 2027 election, raising concerns over the country’s ability to bring its public finances under control.Meanwhile, euro zone business activity expanded at its fastest pace in nearly three-and-a-half years in September, supported by resilient demand despite renewed inflation pressures linked to the Middle East conflict. Immediate resistance can be seen at 1.1261(Daily high), an upside break can trigger rise towards 1.1289(38.2%fib).On the downside, immediate support is seen at 1.1188(Lower BB), a break below could take the pair towards 1.1171(23.6%fib).
GBP/USD: The pound fell against the dollar on Monday as the U.S. currency strengthened, supported by elevated Treasury yields despite weaker-than-expected U.S. jobs data that reduced expectations of a Federal Reserve rate hike this month.U.S. data showed employment growth slowed more than expected in September, while payroll gains for the previous two months were revised sharply lower. The figures have prompted investors to largely rule out another Fed rate increase this month.Energy prices and the Middle East conflict remained in focus, given their potential impact on the UK economy. Brent crude prices fell as higher Middle East exports and the release of oil stocks by G7 nations boosted supply.The pound has nevertheless gained since early last week, supported by comments from Bank of England Governor Andrew Bailey and Deputy Governor Dave Ramsden that reinforced expectations for tighter monetary policy.. Immediate resistance can be seen at 1.3215(Daily high), an upside break can trigger rise towards 1.3299(38.2%fib).On the downside, immediate support is seen at 1.3165(23.6%fib), a break below could take the pair towards1.3111(Lower BB).
AUD/USD: The Australian dollar edged lower on Monday as a stronger U.S. dollar and elevated Treasury yields pressured the currency.Weaker-than-expected U.S. job growth in September, along with downward revisions to payroll gains in the previous two months, reinforced expectations that the Federal Reserve will keep rates unchanged this month.However, persistent U.S. inflation above the Fed’s target continues to support a relatively restrictive policy stance, keeping the possibility of further rate hikes alive in the coming months. With U.S. yields near multi-year highs, the dollar retains a significant yield advantage over the Australian currency.Investors also remained focused on escalating Middle East tensions and the potential inflationary impact of higher oil prices.. Immediate resistance can be seen at 0.6971(38.2%fib), an upside break can trigger rise towards 0.7027(50%fib).On the downside, immediate support is seen at 0.6912 (23.6%fib), a break below could take the pair towards 0.6898(Lower BB)
USD /JPY : The U.S. dollar recovered against the yen on Monday after an initial dip as markets assessed comments from Japanese Prime Minister Sanae Takaichi on fiscal policy and rising government bond yields.Takaichi pledged to keep government bond issuance under control and respond swiftly to excessive market volatility, seeking to reassure investors as concerns over Japan’s fiscal outlook push Japanese government bond yields higher.She also said the government would maintain fiscal sustainability while boosting spending to strengthen growth potential, including by reviewing existing tax breaks and subsidies.Her remarks highlighted growing concerns over rising JGB yields, which are increasing borrowing costs and could make it more expensive for Tokyo to finance its planned spending measures.. 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
European shares edged higher on Monday, while French equities slid to a six-month low on fiscal concerns and losses in Schneider Electric after the company acquired US software firm PTC.
UK's benchmark FTSE 100 was up by 0.20percent, Germany's Dax was down 0.11 percent, France’s CAC was down by 1.10 percent.
Commodities Recap
Gold prices edged higher on Monday as investors scaled back expectations for a Federal Reserve rate hike this month. However, gains were limited by a stronger U.S. dollar and rising Treasury yields..
Spot gold rose 0.2% to $4,152.19 per ounce by 09:26 a.m. EDT (1326 GMT). US gold futures GCcv1 for December delivery added 0.4% to $4,180.30.
Oil prices fell on Monday after crude exports from the Middle East increased and the Group of Seven nations pledged to boost supplies, though selling was limited by ongoing disruption fears linked to the US-Israeli war on Iran.
Brent crude futures were down 43 cents, or 0.4%, at $101.82 a barrel by 1326 GMT, while US West Texas Intermediate crude was down $1.50, or nearly 1.7%, at $89.61.
