The AUDUSD is under selling pressure near 0.6530, losing 0.65% on the day.

The AUDUSD pair is under pressure and trading on the defensive near 0.6530 as the European session begins on Tuesday. The pervasive US Dollar purchasing bias following Atlanta Federal Reserve (Fed) Governor Michelle Bowman’s hawkish comment boosts the US Dollar and puts pressure on the AUDUSD. The main pair is presently trading near 0.6531, down 0.65% on the day.

Furthermore, the varied economic readings from Australia and China, together with the headlines concerning geopolitical tensions between Japan and China, put pressure on the the China-proxy Australian Dollar (AUD), and caps the AUDUSD pair’s gain.

AUDUSD Technical Outlook

Technically, the AUDUSD is trading below the 50- and 100-hour Exponential Moving Averages (EMAs) on the four-hour chart, implying that further weakness is likely for the time being.

However, any intraday pullback below 0.6525 (the lower limit of the Bollinger Band) will reveal the next conflict level around the 0.6490 area (May 26 Low). Further south, the AUDUSD will hit 0.6460 (the low of May 31) and then 0.6400 (the confluence of a psychological round figure and the bottom of November 2022).

On the upside, some follow-through purchasing towards the upper border of the Bollinger Band around 0.6560 will result in a rise to 0.6580. The next barrier is located between 0.6600 and 0.6610. The indicated level demonstrates the intersection of a psychological round figure with a 50-hour EMA. Following that, the AUDUSD has room to test the further upside filter at 0.6655 (the 100-hour EMA) on its way to 0.6700 (July 31 high, round figure).

For the time being, the Relative Strength Index (RSI) is below 50, posing a challenge to the pair’s immediate decline.