Forex
AUD/USD Tumbles to 0.6970 Amid Fading Diplomacy Optimism
The AUD/USD pair fell to 0.6970 after failing to clear the 38.2% Fibonacci retracement level, a key hurdle for bulls.
The US dollar maintained its bullish undertone as optimism over a potential US-Iran diplomacy faded following drone attacks on Saudi Arabia, Jordan, and Iraq.
Despite Reserve Bank of Australia Governor Michele Bullock's comments, the AUD/USD pair remained confined in a familiar range held over the past two weeks.
The mixed technical setup warrants caution before placing aggressive directional bets, with traders refraining from taking risks ahead of the crucial FOMC policy meeting.