AUD/USD Price Analysis: Intraday rally falters in mid-0.6500s amid weak USD
On Tuesday, the AUD/USD recovered losses sparked by the RBA and increased to a new high. The persistent USD selling trend and the risk-on impulse support the risk-sensitive Australian dollar. A trading range older than one week indicates a negative consolidation period and calls for caution.
During the early part of the European session, the AUD/USD pair recovered its intraday losses caused by the Reserve Bank of Australia’s smaller-than-expected 25 bps rate rise and soared to more than a one-week high. However, the intraday rise falters due to a lack of further purchasing and stops just before the mid-0.6500s.
Amid a fresh decline in US Treasury bond rates, the US dollar continues its current dramatic corrective drop from a two-decade high set last week. In addition, the risk-on urge is putting further pressure on the safe-haven dollar and pushing flows towards the risk-sensitive Australian dollar.
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