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AUD/USD holds near 0.7000 amid Fed-rate and RBA-tightening outlook
FXStreet links AUD/USD’s lack of follow through to a firmer US dollar, with traders also pointing to upcoming Australian June employment data.
The AUD/USD pair is consolidating around the 0.7000 psychological level, after failing to extend a modest rise in the Asian session, according to FXStreet.
FXStreet said the US dollar has stayed supported by its gains over the past four days, tied to escalating US-Iran tensions and expectations that energy-driven inflation could push the Federal Reserve to hike rates in 2026. It noted this is seen as a headwind for AUD/USD, even as speculation that the Reserve Bank of Australia could tighten further offers some support.
Traders are also likely to temper bearish positioning ahead of Australian June employment data on Thursday, FXStreet added. The report highlighted that AUD/USD is struggling to break through the 38.2% Fibonacci retracement level from the May-June decline.
On the technical side, FXStreet cited nearby support around 0.6955 at the 23.6% retracement, with the 200-day SMA near 0.6894 and a broader floor around 0.6857. On the upside, acceptance above 0.7015 could open room toward 0.7064, 0.7113, and further resistance levels at 0.7182 and 0.7271.