AUD/USD Price Forecast: Fresh downside likely below 0.6900
The Australian Dollar (AUD) is down 0.15% to near 0.6935 against the US Dollar (USD) in the Asian trade on Monday. The Aussie pair faces selling pressure as the US Dollar outperforms due to escalate France fiscal woes.
The Australian Dollar (AUD) experienced a decline of 0.15% to 0.6935 against the US Dollar (USD) during Monday's Asian trading session. The US Dollar gained strength due to concerns over France's fiscal issues, which could lead the AUD/USD pair to drop below 0.6900. The US Dollar Index (DXY) climbed 0.5% to near 102.50, the highest since 17 months ago.
French finance minister Roland Lescure's 2027 budget bill, presented last week, faces skepticism due to potential obstacles in Parliament. Brown Brothers Harriman's Elias Haddad noted mounting fiscal pressures in France, suggesting a likely budget roll-over. This has enhanced the appeal of the US Dollar as a safe haven. Traders have reduced expectations for hawkish Federal Reserve (Fed) actions at the October meeting after the US Nonfarm Payrolls (NFP) data for September showed modest job growth.
The AUD/USD pair is currently trading below the 20-day Exponential Moving Average (EMA) at 0.7040, indicating bearish near-term momentum. The next resistance level is at the 20-day EMA, and a psychological hurdle at 0.7000 may need to be overcome before the pair can recover.
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