The pair trades below 0.7050 after retreating from June highs, with limited downside ahead of key China and US economic releases.
The AUD/USD pair retreated slightly in Asian trading on Thursday, pulling back from a June 17 high near 0.7065 to just below 0.7050. The US Dollar regained some ground, snapping a two-day losing streak amid cautious optimism over Middle East developments, including a potential US-Iran deal and the reopening of the Strait of Hormuz.
Technical indicators suggest limited downside risk. The pair failed to break above the 100-day Simple Moving Average and the 50% Fibonacci retracement level at 0.7070 but remains supported by a modestly positive MACD and a Relative Strength Index near 58. A break above 0.7070 could target 0.7120 and 0.7191.
Traders are awaiting China’s Trade Balance data and Friday’s US Nonfarm Payrolls report, which may influence near-term direction. The pair’s recent bounce from the 200-day SMA reinforces a cautiously bullish outlook.