AUD/USD: Key support test as RBA looms – Societe Generale

Societe Generale’s Kenneth Broux highlights AUD/USD trading near its 200-day moving average around 0.7024, a historically important support. The pair sits at the lower boundary of a descending channel with support at 0.6975 and resistance at 0.7090. With an RBA rate hike expected and seasonally weaker October for the Australian Dollar, a deeper retracement is possible.

Australian Dollar clings to 200dma

"AUD/USD has undergone a deeper pullback after carving out a lower peak at 0.7235 compared with the high of 0.7275 recorded in May."

"AUD/USD is now at the lower boundary of a descending channel at 0.7000/0.6975."

"Failure to hold above 0.6975 could deepen the pullback towards 0.6920 and the June lows near 0.6860."

"AUD/USD finds itself at an important inflection point, clinging to the 200dma at 0.7024."

"The currency has a record of successfully defending the support line but with seasonality turning bearish in October, a deeper retracement could be in the offing."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)