The pair climbs 0.4% amid a softer USD and RBA signals of potential further rate hikes to curb inflation.
The AUD/USD pair recovered during Thursday’s Asian session, trading near 0.7040 after a 0.4% gain, driven by a weaker US Dollar. The USD Index (DXY) retreated from its late-March highs following optimism over a US-Iran deal to reopen the Strait of Hormuz.
The Reserve Bank of Australia’s hawkish stance, suggesting possible further rate hikes if inflation remains elevated, bolstered the AUD. However, expectations of a December Fed rate hike may limit USD downside and cap the pair’s gains.
Technically, the pair’s repeated failures near the 100-day SMA and bearish momentum indicators, including an RSI near 42, signal potential downside risks if overhead resistance holds.