The pair falls to 0.6970 as traders hesitate ahead of the FOMC meeting and fading US-Iran diplomacy optimism lifts the USD.
The AUD/USD pair extended losses to 0.6970 in Asian trading after failing to break above the 38.2% Fibonacci retracement level near 0.7000. The decline follows weak momentum and persistent selling pressure despite modest bullish signals from technical indicators.
Spot prices remained range-bound over the past two weeks, showing little reaction to Reserve Bank of Australia Governor Michele Bullock’s recent comments. The USD gained ground as geopolitical tensions resurfaced after drone attacks in Saudi Arabia, Jordan, and Iraq dampened hopes for US-Iran diplomacy, reinforcing demand for the safe-haven currency.
Traders are cautious ahead of the Federal Reserve’s two-day policy meeting, which begins today. While the MACD histogram remains marginally positive, the neutral RSI suggests limited directional conviction, leaving the pair vulnerable to further downside if support levels break.