AUD/USD Trades Sideways as Strong US Data Weighs on Aussie

The Australian Dollar (AUD) has been trading steadily against the US dollar (USD), despite the Reserve Bank of Australia's interest rate hike. The AUD/USD pair has recorded a modest gain of 0.54% on the day, but remains capped by longer-term resistance levels.

Strong US economic data and higher Treasury yields have contributed to ongoing USD strength, outweighing the RBA's policy move. Concerns about US inflation and expectations for tighter monetary policy continue to support the USD against the AUD in the near term.

AUD/USD is trading above its key moving averages on the working timeframe but remains under technical pressure from overbought signals. The Ichimoku Kijun offers immediate support at $0.6931, while momentum indicators suggest mixed signals.

Over the next 2-3 days, AUD/USD is expected to fluctuate between $0.6933 and $0.7003, with a higher probability of an upside move. The recent price action suggests a shift from bearish pressure due to weak Australian inflation data and diminishing expectations for RBA rate hikes.