AUD/USD Hits Key Support as RBA Rate Hike Looms

The Australian Dollar (AUD) is facing a crucial test as it approaches its 200-day moving average at around $0.7024, according to Societe Generale's Kenneth Broux.

This historically important support line has been a benchmark for the currency in the past, and Broux notes that AUD/USD is currently trading near this level.

AUD/USD is also at the lower boundary of a descending channel with support at $0.6975 and resistance at $0.7090, suggesting that there may be a deeper retracement possible for the currency in the coming days.

The Reserve Bank of Australia (RBA) is expected to hike interest rates soon, which could have a positive impact on the Australian Dollar, but Broux warns that seasonality turns bearish in October, making a deeper pullback a possibility.