AUD/USD Price Analysis: Retreats to 0.6600 as RBA to retain neutral policy stance

The AUD/USD pair has sensed selling pressure after a less-confident pullback to near 0.6611 in the Tokyo session. The Aussie asset has resumed its downside journey as the USD Dollar Index (DXY) is concluding its marginal corrective move.

Investors are expected to shift their funds into the US Dollar amid anxiety ahead of the United States Gross Domestic Product (GDP) (Q1) data. A decline is expected to 2.0% from the former print of 2.6%. The street is anticipating a decline in GDP numbers as firms have postponed their expansion plans to avoid higher interest obligations.

The Australian Dollar witnessed an extreme sell-off on Wednesday after the soft landing of inflation data. The consistently declining Australian Consumer Price Index (CPI) indicates that the Reserve Bank of Australia (RBA) will keep interest rates steady further.

AUD/USD is in a bearish trajectory after a breakdown of the Inverted Flag chart pattern formed on the daily scale. The aforementioned chart pattern is a trend continuation pattern in which a long consolidation is followed by a breakdown.

The 20-period Exponential Moving Average (EMA) around 0.6680 is acting as a barricade for the Aussie bulls.

The Relative Strength Index (RSI) (14) has slipped into the bearish range of 20.00-40.00, which indicates an activation of downside momentum.

US Dollar bulls will flex their muscles if the Aussie asset will drop below March 15 low at 0.6590. An occurrence of the same will expose the asset to March 08 low at 0.6568 followed by 02 November 2022 high around 0.6500.

In an alternate scenario, only a decisive move above the round-level resistance of 0.6800 will drive the asset toward February 23 high at 0.6872 and February 20 high at 0.6920.

AUD/USD daily chart