The pair remains range-bound as traders await US Nonfarm Payrolls for Fed policy clues amid geopolitical tensions.
The AUD/USD pair stabilizes near the 38.2% Fibonacci retracement level of its May-June decline, hovering below 0.7050. Selling pressure eases, but buyers hesitate as the US Dollar strengthens on safe-haven demand ahead of key US employment data.
Technical indicators show mixed signals. The pair failed to sustain gains above the 100-day Simple Moving Average (SMA) and the 50% Fibonacci level. The Relative Strength Index (RSI) at 56 suggests modest upward momentum, while the MACD remains slightly positive. Support holds above the 200-day SMA at 0.6923.
Geopolitical risks, including US-Iran tensions, support crude oil prices, fueling inflation concerns and expectations of a Fed rate hike in 2026. The US Nonfarm Payrolls report will offer fresh direction for the pair and Fed policy outlook.