**AUD/USD Retreats to a Pivotal Resistance Ahead of RBA and US Labor Market Data**
Original Article Credit: Akash Girimath, InvestingLive.com
The Australian dollar (AUD) has experienced notable volatility against the US dollar (USD) recently, as the AUD/USD currency pair pulled back from recent highs and confronted a significant resistance level. As currency traders and investors sharpen their focus on upcoming central bank decisions and key US labor market data releases, the pair’s near-term direction remains uncertain. This article examines recent AUD/USD movements, the technical set-up, and fundamental factors shaping the market outlook, while referencing new insights from additional sources.
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## **AUD/USD’s Recent Price Action and Technical Outlook**
**Current Situation:**
– The AUD/USD currency pair has staged several attempts to break higher in recent weeks, only to encounter robust resistance around a key zone.
– After a modest recovery, the pair is hovering near a resistance band between 0.6680 and 0.6720. This area has repeatedly served as a ceiling for price action over recent months.
– The broader trend over the last 12 months has generally favored USD strength, but shifting global monetary conditions have injected two-way risk into the pair.
**Technical Analysis:**
– **Resistance and Support Levels:**
– Key resistance: 0.6700 to 0.6720.
– Intermediate resistance: 0.6760, a level tested earlier in 2024.
– Key support: 0.6600; a break below this could trigger a deeper decline.
– Secondary support: 0.6550, the recent swing low.
– **Moving Averages:**
– The 50-day Simple Moving Average (SMA) lies just below current prices, acting as minor support.
– The 200-day SMA is sloping upwards, suggesting that the longer-term uptrend remains intact even as near-term volatility persists.
– **Indicators:**
– Relative Strength Index (RSI) on daily charts is neutral, indicating a balanced supply-demand environment.
– MACD (Moving Average Convergence Divergence) is flatlining, reflecting the market’s wait-and-see stance prior to high-impact data events.
**Chart Patterns:**
– Price action since April has traced a broad sideways range. The inability to close above the 0.6720 region has led to repeated profit-taking.
– A clear break and daily close above 0.6720 would likely be interpreted as a bullish signal, targeting 0.6790 and 0.6840. Conversely, failure here could see renewed selling and a return to the 0.6600-0.6550 zone.
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## **Fundamental Drivers: RBA Decision in Focus**
**The Reserve Bank of Australia (RBA)** is set to deliver its latest policy decision. The central bank faces a delicate balancing act given persistent inflation and signs of slowing economic growth.
**Current
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