AUDUSD continues its consolidative price movement for the third day in a row.

The AUDUSD pair struggled to make any substantial recovery on Friday. Remaining at its lowest level since November 2022. For the third day in a row. Spot prices, on the other hand, manage to maintain above the mid 0.6300s throughout the Asian session. Despite the fact that the fundamental background favors an extension of the current well established decline seen over the last two months or so on.

Trade tensions between the United States and China.

Concerns about th Australian Dollar (AUDUSD) continue to weigh on it.Lregarding China’s worsening economic prospects. Trade tensions between the United States and China. And predictions that the Reserve Bank of Australia (RBA) may stop hiking interest rates. Indeed, US Secretary of Commerce Gina Raimondo stated earlier this week. That she does not expect any adjustments to the Trump administration’s tariffs placed on China until the ongoing study by the US Treasury is completed. Furthermore, the RBA’s decision to keep interest rates on hold for the third consecutive meeting on Tuesday. Along with a lack of new hawkish signals, reassured investors that the central bank will maintain the status quo until the end of the year.

USD is consolidating below a multi month low and providing support to AUDUSD.

In contrast, the Federal Reserve (Fed) is likely to maintain higher interest rates. Furthermore, the stronger than expected US macrodata. Such as the Weekly Jobless Claims onThursday. Confirmed market expectations for another 25 lift-offs in 2023. As a result, the US Dollar (USD) may now stand tall just below its best level since March 9. Implying that the path of least resistance for the AUDUSD pair is to the downside. As a result, the three day rangebound price action might still be classified as a bearish consolidation period. Furthermore, the lack of any significant purchasing demand calls for some caution.