- AUD/USD kept its consolidation well in place on Tuesday.
- Gains in the Greenback kept AUD under downside pressure.
- The RBA’s Monthly CPI Indicator comes next on Wednesday.
AUD/USD resumed its downtrend and rapidly set aside Monday’s bullish attempt, maintaining its range-bound theme in the sub-0.6700 region well in place for yet another session on Tuesday.
Daily losses in the pair came in response to the rebound in the US Dollar (USD) as well as US yields across the curve, which maintained the price action around the risk-related universe subdued.
Adding to the sour sentiment in the Australian dollar, both copper prices and iron ore prices traded with humble losses, although well within their consolidation ranges.
Regarding monetary policy, the Reserve Bank of Australia (RBA), like the Fed, is among the last major central banks to alter its stance. At its last meeting, the RBA matched consensus and maintained a hawkish approach, keeping the official cash rate (OCR) at 4.35% and indicating flexibility for future decisions.
During her press conference, Governor Bullock confirmed that the board discussed possible rate hikes while ruling out cuts. Additionally, the bank remains focused on inflation, showing reluctance to ease policy unless necessary. The central bank emphasized that inflation is still above target and reiterated its commitment to taking the necessary actions to bring inflation back within the target range.
Furthermore, the swaps market currently estimates less than a 25% chance of a rate cut by December 2024, increasing to approximately 65% by February 2025.
The contrast between potential Fed easing and the RBA's likely prolonged restrictive stance could support AUD/USD in the next few months.
Meanwhile, unabated concerns about the slow momentum in the Chinese economy could hinder a sustained recovery in the Australian currency as China continues to face post-pandemic challenges.
AUD/USD daily chart
AUD/USD short-term technical outlook
If bulls take control, AUD/USD may reach its May peak of 0.6714 (May 16), followed by the December 2023 high of 0.6871 and the July 2023 top of 0.6894 (July 14), all before the key 0.7000 threshold.
Bearish attempts, on the other hand, may send the pair lower, first touching the June low of 0.6574 (June 10) before reaching the important 200-day SMA of 0.6551. A deeper decline might result in a return to the May low of 0.6465 and the 2024 bottom of 0.6362 (April 19).
In general, the uptrend should continue as long as the AUD/USD trades above the 200-day SMA.
The 4-hour chart indicates a lack of upward momentum thus far. However, the initial barrier appears to be 0.6714, which is ahead of 0.6728 and 0.6759. In contrast, immediate support is at 0.6574, followed by 0.6558. The RSI fell to around 43.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks

EUR/USD climbs to multi-month high above 1.1000 on broad USD weakness
EUR/USD extends its rally to a fresh six-month high above 1.1000 in the European session on Thursday. The pair benefits from the intense selling pressure surrounding the US Dollar after US President Trump unveiled aggressive tariffs on the "Liberation Day." Markets await mid-tier US data releases.

GBP/USD jumps above 1.3100 ahead of US data
GBP/USD is extending its upbeat momentum above 1.3100 in European trading on Thursday as the US Dollar slumps to a fresh YTD low. Worries about a tariff-driven US economic slowdown lift Fed rate cut bets and weigh on the Greenback. The focus now remains on the US data for further impetus.

Gold price moves further away from all-time peak; downside potential seems limited
Gold price extends its steady intraday pullback from the all-time peak touched this Thursday, though it manages to hold above the $3,100 mark through the early European session. Bullish traders opt to take some profits off the table and lighten their bets around the commodity amid slightly overbought conditions.

SOL is the winner as Solana chain turns into battleground for meme coin launchpad and DEX
Solana (SOL) gains nearly 2% in the last 24 hours and trades at 118.28 at the time of writing on Thursday. A Decentralized Exchange (DEX) and a meme coin launchpad built on the Solana blockchain have waged a war for users and compete for the trade volume on the chain.

Trump’s “Liberation Day” tariffs on the way
United States (US) President Donald Trump’s self-styled “Liberation Day” has finally arrived. After four straight failures to kick off Donald Trump’s “day one” tariffs that were supposed to be implemented when President Trump assumed office 72 days ago, Trump’s team is slated to finally unveil a sweeping, lopsided package of “reciprocal” tariffs.

The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.