Australian Dollar Advances On Higher Oil Prices; RBA Decision In Focus

(RTTNews) - The Australian dollar firmed against its most major counterparts in the Asian session on Monday, as oil prices rose and investors awaited the Reserve Bank of Australia's monetary policy decision to be released on Tuesday.

The RBA will announce its interest rate decision on Tuesday, with economists expecting another 50 basis point increase in interest rate.

Oil prices climbed as the Organization of Petroleum Exporting Countries and its allies is expected to cut output of up to 1 million barrels per day when it meets on Wednesday.

The proposal is aimed to lift the price of oil, which have fallen for four consecutive months since June.

PMI readings from Europe and the U.S. due today could offer more signals on the global economic outlook.

The latest survey from S&P Global showed that Australia's manufacturing sector continued to expand in September, albeit at a slower pace, with a manufacturing PMI score of 53.5.

That's down from 53.8, although it remains above the boom-or-bust line of 50 that separates expansion from contraction.

The aussie edged up to 0.6460 against the greenback and 93.51 against the yen, off its early lows of 0.6400 and 92.58, respectively. The aussie is likely to locate resistance around 0.70 against the greenback and 96.00 against the yen.

The aussie gained to 0.8871 against the loonie and 1.5215 against the euro, after dropping to 0.8841 and 1.5305, respectively in early deals. The aussie may face resistance around 0.90 against the loonie and 1.49 against the euro.

On the other hand, the aussie was down against the kiwi, with the pair trading at 1.1392. This followed a 5-day high of 1.1442 seen at 6:25 pm ET. The currency is poised to challenge support around the 1.10 mark.

Looking ahead, PMI reports from major European economies are due in the European session.

The U.S. construction spending for August and ISM manufacturing for September will be released at 10:00 am ET.