AUDUSD pair falls for the second day in a row, however the decline remains restricted .
On the first day of a new week, the AUDUSD pair attracts some dip-buying. And maintains its pullback from the 0.6900 level, or the highest level since February 2023, reached on Friday. Spot prices, on the other hand, continue in the red for the second day in a row. Trading around the 0.6865 level during the early European session.
The Federal Reserve’s (Fed) hawkish forecast. Which indicates that borrowing prices may still need to climb by up to 50 basis points by the end of this year, helps the US. The US dollar (USD) is expected to gain some ground on Monday. Aside from that, a generally lower risk tone amid concerns of a worldwide economic slump. Notably in China, boosts the safe-haven greenback while weighing on the risk-sensitive Australian dollar. However, the Reserve Bank of Australia’s (RBA) surprise 25 basis point rate hike. And hawkish policy statement operate. As a tailwind for the Australian Dollar, limiting losses in the AUDUSD pair.
Last week’s breakout through the 100-day Simple Moving Average (SMA). And subsequent advance beyond the 0.6800 round-figure barrier was viewed. As a new trigger for bulls. However, the Relative Strength Index (RSI). On the daily chart is hanging around 70, discouraging traders. Putting new bullish wagers on the AUDUSD pair. Nonetheless, the aforementioned underlying backdrop suggests. That the path of least resistance for spot prices is downward. And any corrective slide may draw new buyers near the 0.6800 resistance breakpoint.
However, a sustained break below the latter may inspire some technical selling, dragging the AUDUSD pair down towards the 100-day SMA, which is now set at 0.6725. The aforementioned region should operate as a crucial pivotal point and a strong near-term base for spot prices, if broken, paving the way for further losses.
On the other hand, the 0.6900 round-figure threshold appears to have arisen as an instant barrier. Some more buying has the potential to boost the AUDUSD. pair higher towards the 0.6955-0.6960 range, above which bulls may attempt to break the key 0.7000 level for the first time since February 14.
