AUD/USD Price Forecast: Holds comfortably above 0.7100 as bulls await Trump-Xi meeting

The AUD/USD currency pair managed to stay above the 0.7100 threshold during the Asian session, maintaining a relatively strong position. However, traders are waiting with bated breath for Reserve Bank of Australia Governor Michele Bullock's speech on Tuesday, along with Australian employment figures and the upcoming Trump-Xi meeting.

Rising expectations of an impending RBA rate hike this month have provided some support for the Australian Dollar (AUD), while the US Federal Reserve's hawkish stance and Middle East tensions have helped the US Dollar (USD) stabilize. From a technical standpoint, the pair has been trading near its 100-day Simple Moving Average (SMA) and just above the 38.2% Fibonacci retracement level of the June-September upswing.

The Relative Strength Index (RSI) hovers around 48, indicating a neutral momentum, and the Moving Average Convergence Divergence (MACD) is slightly negative, suggesting that the upward momentum may be gradual rather than abrupt. The next key resistance level is the 23.6% retracement around 0.7149, followed by the recent swing high near 0.7237.

A breakthrough above this level would strengthen the overall bullish sentiment. On the downside, support can be found at the 38.2% Fibonacci retracement at 0.7095, along with the 50.0% retracement at 0.7051 and the 100-day SMA at 0.7078. Deeper support levels include the 61.8% retracement at 0.7007 and the 78.6% level at 0.6944.