The AUD/USD pair retreated below 0.6800 on Monday, following a short-lived pullback. The Aussie asset is under pressure due to a stronger US Dollar and rising geopolitical tensions in the Middle East.
Key Factors:
- US Dollar Strength: The US Dollar (USD) gained further ground following the release of stronger-than-expected US employment data.
- Fed Rate Expectations: The upbeat job data has reduced expectations for a larger rate cut by the Federal Reserve (Fed) in November.
- Geopolitical Risks: Escalating tensions in the Middle East are also weighing on the AUD.
Technical Analysis:
- Downward Trend: The AUD/USD pair is in a downward trend, with potential for further declines.
- Support Levels: Key support levels are at 0.6800, 0.6709, and 0.6650.
Overall Outlook:
The AUD/USD pair is likely to remain under pressure due to the stronger US Dollar and geopolitical risks. Traders should monitor technical indicators for signs of a trend reversal.