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AUD/USD tests key support ahead of RBA decision
Societe Generale notes the pair is near its 200-day moving average around 0.7024, with support at 0.6975 and resistance at 0.7090.
Ahead of the Reserve Bank of Australia policy announcement, AUD/USD is trading near a key technical level, with Societe Generale’s Kenneth Broux pointing to the pair around its 200-day moving average near 0.7024.
Broux said AUD/USD is sitting along the lower boundary of a descending channel, where 0.6975 is the cited support level and 0.7090 is the resistance level.
The note also highlighted expectations for an RBA rate hike and mentioned that October is seasonally weaker for the Australian dollar, factors that could encourage a deeper pullback, according to Societe Generale.
FXStreet said AUD/USD was defending 0.7000 at the start of the week, with a stronger US dollar supported by US yields near multi year highs and ongoing geopolitical risk tied to the US-Iran standoff.