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AUD/USD pinned near 0.7000 for fourth straight session
The Australian dollar’s rebound attempt near 0.6900 has stalled at the 50-day EMA, while cooling inflation expectations reinforce a near-term RBA pause.
FXStreet reports AUD/USD is flat on the session and pinned around the 0.7000 level for a fourth consecutive day, showing limited follow-through despite an earlier recovery from the 0.6900 area.
The move has run into technical resistance near the 50-day exponential moving average, which is holding above 0.7000 and has repelled repeated probes. At the same time, momentum indicators are rising, with the daily stochastic relative strength index climbing through the mid-70s without confirming price progress, suggesting momentum is being spent rather than built.
On the fundamental side, FXStreet points to a domestic inflation expectations survey that fell to 4.7% in July from 5.5% in June, a cooling print that supports the Reserve Bank of Australia keeping its cash rate unchanged at 4.35%. The market is now treating the late-July CPI report as the key datapoint ahead of the August 11 meeting, with futures still leaning toward the cash rate ending the year nearer 4.50%.
Attention also shifts externally, with the People’s Bank of China set to publish policy on Monday and any dovish or easing signal likely to influence AUD/USD, given the Aussie’s sensitivity as a China proxy. FXStreet also notes that Gulf war related disruptions can cut both ways for the commodity currency, which is linked to Australia’s energy exports including LNG and coal.