The Australian dollar against the US dollar is currently at 0.66063, and there is a possibility of it moving lower towards around 0.6600 due to the Reserve Bank of Australia keeping things unchanged.

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• AUD/USD eyes downside to near 0.6600 as RBA maintains the status quo.

The pair currently trades last at 0.66063.

The previous day high was 0.674 while the previous day low was 0.6648. The daily 38.2% Fib levels comes at 0.6705, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6683, expected to provide resistance.

The AUD/USD pair delivers a vertical fall and declines further towards the round-level support of 0.6600 in the European session. The Aussie asset looks set for a further decline as the Reserve Bank of Australia (RBA) surprisingly keeps interest rates unchanged at 4.10%. Also, the upbeat US Dollar Index builds pressure on the Aussie asset.

S&P500 futures remain weak in London as investors turn precautionary ahead of US factory activity data. The US Dollar Index (DXY) refreshes a three-week high at 102.22 as fears of global recession deepen due to tight monetary policy by global central banks. The 10-year US Treasury yields have jumped to 4.0% ahead of labor market data.

But before the Employment report, Manufacturing PMI will be keenly watched. As per the consensus, Manufacturing PMI is seen higher at 46.5 vs. June’s figure of 46.0. In spite of higher factory activities, the Manufacturing sector is expected to remain in a contracting phase. Investors should note that a figure below 50.0 is considered contracting and this would be the ninth contraction print in a row.

The Australian Dollar senses significant pressure as RBA Governor Philip Lowe maintains the status quo. RBA Lowe keeps interest rates unchanged at 4.10% but remains doors open for further rate hikes. Australian inflation is declining at a decent pace. Regarding the inflation outlook, RBA forecasted that inflation will return to 2-3% by late 2025.

Inflation in Australia could rebound further as global oil prices have recovered significantly and labor market conditions are extremely tight. An upbeat labor shortage could keep consumer spending momentum intact. Going forward, investors will focus on Q2 Retail Sales data, which will release on Thursday.

Technical Levels: Supports and Resistances

AUDUSD currently trading at 0.6612 at the time of writing. Pair opened at 0.6717 and is trading with a change of -1.56 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.6741, 50 SMA 0.67, 100 SMA @ 0.6693 and 200 SMA @ 0.6731.

The previous day high was 0.674 while the previous day low was 0.6648. The daily 38.2% Fib levels comes at 0.6705, expected to provide resistance. Similarly, the daily 61.8% fib level is at 0.6683, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 0.6664, 0.661, 0.6572
• Pivot resistance is noted at 0.6755, 0.6793, 0.6847

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