Alex Borzak
⬤ The Aussie dollar took a hit during European trading, with AUD/USD breaking through the 0.6960–0.6965 support zone. The drop came as the US dollar found its footing while metals prices took a nosedive—both factors that typically drag down the Australian currency. The breakdown has traders watching closely to see how the pair will react when the Reserve Bank of Australia announces its interest rate decision in the next session.
⬤ Looking at the daily chart, AUD/USD has fallen below a critical pivot area after struggling to hold onto recent gains. Losing the 0.6960 level is a red flag for the short-term technical setup, with the pair now sitting below nearby resistance. The momentum has clearly weakened as AUD/USD drifts lower, driven by renewed dollar demand and sluggish commodity performance—a combo that's rarely kind to the Aussie.
⬤ The RBA policy announcement is shaping up to be the main event for AUD/USD in the near term. Markets are leaning toward a rate hike, backed by stubborn inflation concerns that Governor Bullock has been highlighting, plus the solid employment numbers Australia just posted. But there's always room for surprises. From a technical angle, if the RBA disappoints or the dollar keeps climbing, AUD/USD could slide toward the 0.6900–0.6880 support zone marked on the chart.
⬤ This matters because AUD/USD moves with global risk appetite, commodity trends, and central bank policy shifts. How the pair trades around the RBA decision will likely set the tone for volatility ahead. A push back above 0.7000–0.7030 would be a bullish signal, but staying below that zone keeps the downside risk alive as traders navigate an increasingly headline-driven market.
Alex Borzak
