The pair holds near two-week lows after soft Australian inflation data reduces RBA tightening expectations and USD strengthens.
The AUD/USD pair retreated to the mid-0.6900s on Thursday, down slightly for the day, as renewed US Dollar demand weighed on the currency. Spot prices remain above Wednesday’s two-week low but struggle near the 0.6950 level amid technical resistance.
Weaker-than-expected Australian consumer inflation figures reduced bets for near-term Reserve Bank of Australia rate hikes, pressuring the AUD. Meanwhile, the USD found support from expectations of a Federal Reserve rate increase in 2026 due to persistent inflation risks and geopolitical tensions.
Technical indicators suggest bearish momentum, with the pair trading below its 100-period EMA on the 4-hour chart and the RSI below 50. A break below the 0.6925-0.6900 support zone could signal further downside.