Analysts flag oversold conditions but see risk of AUD/USD breaking below 0.6900 toward 0.6835.
The Australian dollar fell 1.22% against the US dollar to 0.6908, marking a sharp intraday selloff. The move leaves the currency pair deeply oversold but still vulnerable to further downside pressure.
Prior to the drop, AUD/USD had traded in a tighter range, with recent support near 0.6950. Analysts now expect a potential break below 0.6900, though they anticipate limited follow-through.
The selloff reflects broader risk sentiment and shifting expectations for monetary policy divergence between the Reserve Bank of Australia and the Federal Reserve.