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The Australian Dollar steadies on Monday after last week’s sharp pullback.
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A mild risk-on sentiment and a weaker US Dollar provide support for the AUD.
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A drop below the 0.6500 level could intensify bearish momentum toward 0.6450 and 0.6375.
The AUD/USD pair remains largely unchanged on Monday, trading just above the 0.6500 mark. A softer US Dollar and lower US Treasury yields, combined with a modestly risk-on market sentiment, are offering some support to the pair. However, upward momentum appears limited, with the broader technical outlook remaining unclear after last week’s sharp reversal.
The fundamental backdrop is moderately supportive in a quiet session lacking major economic releases. Market optimism is being bolstered by reports of a possible meeting between US President Donald Trump and Chinese Premier Xi Jinping at the upcoming APEC summit, raising hopes for improved relations between the world’s two largest economies.
Technical Analysis: AUD/USD Hovers Above Key Support at 0.6490
Technically, the picture remains mixed. The AUD/USD is trading close to its intraday low near 0.6500, with a lack of clear directional bias. Momentum indicators such as the Relative Strength Index (RSI) on both daily and 4-hour charts hover near the neutral 50 level, while the presence of Doji candles on the 4-hour chart reflects market indecision.
A break below the key support at 0.6490 could trigger additional downside pressure, opening the door for a move toward the July 17 low at 0.6450, followed by the June 23 low at 0.6375. On the upside, initial resistance lies at Friday’s high of 0.6545, with further barriers around the early July highs near the 0.6590 region.
