The pair trades lower on reduced Reserve Bank of Australia rate hike expectations and a resilient US Dollar amid inflation concerns.
The AUD/USD pair retreated to around 0.7150 on Friday, reversing a brief recovery from sub-0.7100 levels. A firmer US Dollar, driven by rising US inflation and Federal Reserve rate hike expectations, weighed on the pair.
Reduced bets for a June interest rate increase by the Reserve Bank of Australia further pressured the Australian Dollar. The pair remains below key resistance at 0.7180-0.7185, a confluence of the 100-period SMA and Fibonacci retracement levels.
Technical indicators suggest cautious bearish momentum, with the Relative Strength Index near 53 and the pair struggling to break below the 38.2% Fibonacci level.