AUD/USD Stalls at 0.7000 as RBA Decision Looms
The AUD/USD pair is trading near its lowest level since August 4, hovering just above the psychological mark of 0.7000 at the start of a new week.
This comes as traders wait for the Reserve Bank of Australia's (RBA) interest rate decision on Tuesday, which is expected to be a 25-basis-point hike.
The move would likely give investors more cues about the future policy path, but for now, the pair is being capped by a bullish US Dollar undertone, bolstered by rising bets for another rate hike by the US Federal Reserve in October amid oil-driven inflation fears and elevated US bond yields.
The technical analysis suggests that the AUD/USD pair maintains a bearish near-term bias, with momentum indicators hinting that downside pressure persists. The Relative Strength Index (RSI) is around 35, leaning toward oversold territory, while the Moving Average Convergence Divergence (MACD) remains below zero with a negative histogram.