US Employment Data

AUD/USD extended its decline after the Reserve Bank of Australia lifted interest rates to 4.85%, the highest level in eighteen years. Technical traders are watching 0.6895 as the next downside target, while a move above 0.7000 would weaken the bearish setup.

USD/ZAR has moved modestly higher after Friday’s sharp dollar-led decline, with traders watching whether the pair can hold its lower trading zone. Thin South African holiday volume, Middle East uncertainty and Wednesday’s US inflation data are keeping market participants cautious.