AUD/USD Set To Retreat Under Pressure from Hawkish Fed and Rising Tensions

The AUD/USD pair has been under pressure due to the relatively hawkish Federal Reserve interest rate decision and rising geopolitical tensions. The dollar index jumped to its highest level since July 30, while Australia's bond yields have continued to rise.

Economists expect the upcoming report on Australian jobs numbers to show an increase in employment last month. Following that, the next key catalyst for the pair will be the Reserve Bank of Australia (RBA) interest rate decision next week, with economists predicting a 0.25% hike in rates.

A technical analysis suggests that the AUD/USD pair is likely to resume its downward trend, potentially reaching the support level of 0.7000. A move above the resistance at 0.7200 would invalidate this bearish outlook.