AUD/USD Slumps as Hawkish Fed Decision Takes Toll

The Australian dollar has been under pressure in recent weeks due to the relatively hawkish Federal Reserve interest rate decision and rising geopolitical tensions. The AUD/USD pair is trading at 0.7118, down by 1.68% from its highest point this month.

The US dollar index jumped to a high of 100.43, its highest level since July 30, and much higher than the month's low of 98.58. The rally accelerated after last week's Federal Reserve interest rate decision, in which officials decided to hike rates by 0.25%.

Economists expect Australia's statistics agency to publish jobs numbers that show the economy added more jobs last month. Next week, the Reserve Bank of Australia (RBA) will make its next interest rate decision, with economists predicting a 0.25% hike in rates.

A technical analysis of the AUD/USD pair shows it has slumped in recent weeks and is likely to resume its downward trend, potentially reaching the support level of 0.7000.