Ella 
In the Asian market on Monday, the AUD/USD rebounded from the previous session’s decline and moved higher to around 0.6460. AUD/USD is under downward pressure following mixed US employment data on Friday. Mild U.S. economic data raised the prospect of a hold on hold at the Federal Reserve’s September meeting.
The U.S. non-farm payrolls report for August showed 187,000 jobs, compared with expectations of 170,000. The previous value was 157,000. Average hourly earnings (August) fell to 4.3%, unchanged from the previous reading of 4.4%.
However, investors are still considering the prospect of a 25 basis point (bps) interest rate hike by the US Federal Reserve (Fed), which is bearish for the AUD/USD currency pair and prevents AUD/USD from rising.
Market participants will focus on the Reserve Bank of Australia’s (RBA) monetary policy meeting on Tuesday. As cost pressures in Australia are easing, the Reserve Bank of Australia is expected to remain on hold for the second consecutive month and will not raise interest rates by 25 basis points.
The U.S. dollar index, which measures the greenback’s performance against six other major currencies, was hovering around 104.20. In addition, rising U.S. bond yields also provided support for the U.S. dollar, which closed at 4.18% on Friday. Strong U.S. non-farm payrolls data has raised concerns about the outlook for inflation, with market participants awaiting the Federal Reserve’s upcoming policy decision to provide more guidance on AUD/USD trading.
