The pair falls 0.45% to 0.6966 as safe-haven demand boosts the USD amid Middle East tensions and inflation concerns.
AUD/USD declined 0.45% to 0.6966 on Thursday, pressured by a resurgent US Dollar (USD) despite better-than-expected Australian employment figures. The USD strengthened as geopolitical risks in the Middle East fueled safe-haven demand, while rising oil prices stoked inflation fears, reinforcing expectations of further Federal Reserve rate hikes.
The US Dollar Index (DXY) climbed to 101.45, its highest level in three weeks, while AUD/USD remained above key support levels at the 21-day (0.6948) and 200-day (0.6896) SMAs. However, the pair struggled below the 50-day SMA at 0.7028, with technical indicators signaling weakening bullish momentum.
Resistance is seen at 0.7028, followed by 0.7100 and 0.7250, while support lies at 0.6948 and 0.6896. A break below these levels could target 0.6800.