Japan-US Intervention Triggers Reassessment of USD Positioning

The U.S. and Japanese authorities have conducted a coordinated FX intervention to address the sharp depreciation of the yen against the dollar.

This move has triggered a reassessment of USD positioning and volatility across major currency pairs, including AUD/USD.

AUD/USD is currently trading at $0.7004, down for the day and holding below its key moving averages.

The pair remains under pressure near the session's low with limited volatility throughout the trading session.

According to analysts, over the next 2-3 sessions, AUD/USD is expected to consolidate within the $0.6969 to $0.7039 range, with a downside risk prevailing at 60% and an up-move at 40%.