The AUD/USD pair is showing slight downward movement early in the week, trading near 0.7020, down about 0.15% during the Asian session. Traders are holding back from making new trades ahead of the Reserve Bank of Australia's (RBA) decision on Tuesday. The RBA is expected to raise interest rates by 25 basis points due to ongoing inflation concerns.
China's weaker-than-expected official PMIs released over the weekend are putting pressure on the Australian dollar. Additionally, geopolitical tensions are boosting the safe-haven US dollar, further weighing on the AUD/USD pair.
From a technical standpoint, the pair is struggling below the 100-day Exponential Moving Average (EMA) at 0.7046 and the 38.2% Fibonacci retracement level at 0.7026, suggesting a loss of upward momentum. However, indicators like the Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI) suggest a consolidative phase rather than a clear breakdown.
Immediate support is seen at 0.6976, with deeper support near 0.6894. On the upside, resistance levels are at 0.7026, 0.7067, 0.7107, 0.7165, and 0.7239.