Soft Australian inflation figures push the pair below 0.6950, marking a third straight day of losses amid Fed policy uncertainty.
The AUD/USD pair fell to its lowest level in over two weeks, extending a three-day losing streak after weaker-than-expected Australian consumer inflation data. The pair briefly dipped below 0.6950 before rebounding slightly to trade near 0.6930, down 0.25% for the day.
The decline follows repeated failures to break above the 0.7000 psychological level and a breakdown below key support at 0.6965-0.6960, which aligns with the 38.2% Fibonacci retracement of June’s rally. Technical indicators, including a near-38 RSI and negative MACD, suggest persistent downward pressure.
Market focus remains on the Federal Reserve’s policy decision later today, with USD bulls sidelined ahead of the announcement. However, rising US-Iran tensions have fueled inflation concerns, bolstering bets for a potential Fed rate hike in 2026.