AUD/USD Price Forecast: Eyes upside despite pullback from June high, around 0.7065
The AUD/USD pair edges lower during the Asian session on Thursday and moves away from the highest level since June 17, touched the previous day. Spot prices currently trade just below 0.7050, though the downside potential seems limited.
The Australian Dollar (AUD) currently trades near 0.7050, with limited downside potential despite a pullback from its June high. Despite optimism surrounding a potential US-Iran deal, the US Dollar gains some positive momentum, briefly breaking a two-day losing streak. The AUD/USD pair may face pressure ahead of China's Trade Balance data and the US Nonfarm Payrolls report on Friday.
Technical indicators show the Moving Average Convergence Divergence (MACD) remains modestly positive, while the Relative Strength Index is near 58, indicating constructive momentum without overbought conditions. Traders might wait for follow-through buying beyond the 50% Fibonacci retracement level at 0.7070 before positioning for further gains.
The 61.8% retracement level at 0.7120 and the 78.6% level at 0.7191 could be significant targets. On the downside, initial support is at the 38.2% retracement at 0.7020, with further demand at the 23.6% level at 0.6958 and the 200-day SMA around 0.6920. The Reserve Bank of Australia (RBA) influences the AUD through interest rate adjustments, with relatively high rates supporting the currency.
China's economic health and the price of Iron Ore, Australia's largest export, are other key drivers of the AUD's value.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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