AUD/USD declines as US trade policy uncertainty fuels volatility

💡 DMK Insight

AUD/USD’s dip from 0.7100 signals potential volatility ahead. After briefly breaching the 0.7100 mark, the pair’s retreat to around 0.7080 could indicate a struggle for momentum. Traders should note that this level has acted as a psychological barrier, and a sustained move below could trigger further selling pressure. The broader context includes ongoing market reactions to economic data releases from Australia and the U.S., which could influence the pair’s trajectory. Keep an eye on the upcoming employment figures from Australia, as they could provide clarity on the RBA’s future policy stance. If the data disappoints, we might see the AUD weaken further, potentially testing support around 0.7050. On the flip side, if the pair manages to reclaim the 0.7100 level decisively, it could signal renewed bullish sentiment, attracting buyers and possibly pushing towards resistance at 0.7150. Watch for any shifts in risk sentiment, as they could also impact this currency pair significantly. Overall, the immediate focus should be on the 0.7050 and 0.7100 levels for potential trading opportunities.