**AUD/USD Extends Losses: Key Technical Levels and Market Analysis**
*Original Reporting by Arnold Jarunga | Additional analysis included.*
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The Australian Dollar (AUD) has continued its downward trajectory against the US Dollar (USD), with the AUD/USD currency pair moving decisively below significant short-term technical markers. Early on Tuesday, the pair fell underneath its 100-hour Moving Average (MA), pushing to new session lows around the 0.6555 mark. This development signals potential for continued bearish pressure unless a strong reversal occurs.
Below is a comprehensive analysis of the current AUD/USD situation, incorporating additional context from related financial news and market trends.
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## Current Price Action and Technical Breakdown
The AUD/USD pair has come under renewed selling pressure during the recent trading sessions. The move below the 100-hour MA — a closely watched technical indicator — suggests that bearish sentiment is gaining strength in the short term.
### Key Technical Developments
– **100-Hour MA Breach:**
The pair’s decline below the 100-hour Moving Average is significant because this level previously acted as near-term support for bullish moves. Breaching it indicates sellers have taken control of recent price action.
– **Session Lows:**
After dropping below the 0.6570 region, AUD/USD extended its decline to trade near 0.6555 during early European trading hours. This represents the lowest level the pair has reached in several sessions.
– **Previous Support Zones:**
The immediate support is seen just above 0.6550, a level that previously acted as a springboard for buying interest. If this level fails to hold, technical selling could intensify.
– **Moving Averages:**
Both the 50-hour and 200-hour MAs are tracking above the current price, adding layers of potential resistance on any recovery attempt.
– **Momentum Indicators:**
The Relative Strength Index (RSI) on the hourly chart is moving lower, a sign of increasing bearish momentum. The MACD also indicates strengthening downside pressure.
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## Fundamental Factors Influencing AUD/USD
Beyond technical influences, several fundamental dynamics have contributed to the Australian Dollar’s weakness and the US Dollar’s relative strength.
### Australian Economic Challenges
– **Soft Economic Data:**
Recent reports indicate that Australia’s labor market is slowing, with job gains missing expectations. Wage growth remains modest, reducing the likelihood of imminent rate hikes by the Reserve Bank of Australia (RBA).
– **Inflation Trajectory:**
Although inflation remains above the RBA’s target range, recent softer consumer price index (CPI) figures have dampened expectations for more aggressive monetary policy action.
– **China’s Slowdown:**
As a major trading partner, Australia’s economy is sensitive to China’s economic health. Recent data has shown slower export growth and tepid industrial activity in China, which weighs on AUD sentiment given Australia’s reliance on commodity exports to China.
### US Dollar Strength
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