AUD/USD: Support at 0.7120 under scrutiny – UOB

💡 DMK Insight

AUD/USD is flirting with critical support at 0.7120, and here’s why that matters: The recent GDP data from Australia has triggered a notable selloff, pushing the pair down to this key level. Traders should be aware that while the intraday momentum indicates a potential retest of 0.7120, the oversold conditions could prevent a decisive break. If the support holds, we might see a bounce back, which could set up a short-term buying opportunity. Conversely, a break below this level could lead to further declines, potentially targeting the next support around 0.7050. Keep an eye on the daily RSI, which is currently showing oversold signals, suggesting a possible reversal. Also worth noting is the broader market context; if the USD continues to strengthen due to ongoing interest rate hikes, it could pressure AUD/USD further. Traders should monitor the upcoming economic indicators from both the U.S. and Australia, as they could influence market sentiment and volatility. Watch for any news that might impact commodity prices as well, since Australia is heavily reliant on its exports.