AUD/USD Consolidates Near 0.72 as Hawkish Sentiment Intact
The AUD/USD exchange rate is consolidating around 0.7200 at the start of a new week, influenced by a mix of bullish and bearish forces.
Hawkish expectations for a Reserve Bank of Australia (RBA) interest rate hike in September are supporting the Australian Dollar, while bets on a US Federal Reserve increase and rising tensions between the US and Iran are pushing up the US Dollar.
The technical setup suggests that spot prices may move higher, as the AUD/USD pair has found acceptance above the 78.6% Fibonacci retracement level of its May-June downfall, and is close to a multi-year peak at 0.7272.