AUD/USD Pauses at 38.2% Fibo as Geopolitics and Inflation Sway USD
The AUD/USD pair has found support near the 38.2% Fibonacci retracement level, but its pullback from a recent high around $0.7065 seems to have stalled.
Geopolitical uncertainties and inflation fears are supporting the US Dollar (USD) ahead of the crucial US Nonfarm Payrolls (NFP) report, which is expected to provide fresh cues about the Federal Reserve's policy path.
The NFP report will be closely watched for its impact on the USD and the AUD/USD pair. A high reading is seen as bullish for the USD, while a low reading is bearish.
From a technical perspective, the AUD/USD pair's inability to build on its recent strength above the 100-day Simple Moving Average (SMA) warrants caution for bulls.