The pair retreats after testing the 100-day SMA at 0.7050 but maintains a bullish bias amid supportive technicals and fundamentals.
The AUD/USD pair retreated to the 0.7030-0.7025 range after failing to sustain gains above the 100-day Simple Moving Average at 0.7050. The pullback follows a fresh high since June 17, driven by a rebound in the USD and weaker-than-expected China manufacturing data.
Technical indicators remain constructive, with the Relative Strength Index near 57 and the MACD slightly positive. Last week’s breakout above the 0.7020 Fibonacci level reinforced bullish momentum, though resistance at 0.7053 and 0.7069 persists. A daily close above these levels could target 0.7117.
Downside risks are limited by receding Fed rate hike expectations and easing inflation concerns, which cap USD strength. Renewed optimism over a US-Iran deal also supports risk sentiment.