Societe Generale analysts highlight that AUD/USD has pulled back toward its 50-day moving average after an interim high near 0.7280. Softer Australia Consumer Price Index (CPI) and weaker employment have reduced odds of further Reserve Bank of Australia (RBA) hikes, leaving support at 0.7070 and resistance around 0.7220–0.7280, with a breach of support risking a deeper decline toward 0.6975 and 0.6850/0.6830.

Key 50-day average under scrutiny

"AUD/USD has pulled back toward the 50-DMA after carving out an interim high near 0.7280 in May."

"It will be important to observe whether the pair can hold above this moving average. The recent pivot low of 0.7070 is the first support."

"A breach of this could trigger a deeper decline toward the next projection at 0.6975 and perhaps even towards the lower limit of a multi-month channel at 0.6850/0.6830."

"The recent pivot high of 0.7280 is a near-term hurdle."

"Spot mildly offered after below forecast April CPI dims RBA hike prospects. Support 0.7070, resistance 0.7220."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)