AUD/USD Rally Loses Steam as Pullback Risk Builds

The Australian dollar’s had a strong run this year, but that momentum’s starting to fade. A lot of AUD pairs are bumping up against resistance now. People are watching; the RBA may hike rates by 25 basis points, but honestly, most traders have already priced it in. The RBA might just keep rates steady and still sound hawkish, since inflation’s not really under control and jobs numbers are holding up.

But there’s another side to this. US data—things like ISM and NFP—keeps coming in hot. If that continues, the US dollar gets stronger, and the odds of a quick pullback are pretty high.

So, what’s next? In the short term, AUD/USD probably pulls back—especially if the RBA doesn’t deliver or the US dollar keeps rallying. But the bigger trend still looks positive; any dips could bring buyers back in, with the pair still having room to move toward 0.72 over time.

With RSI hovering over overbought territory in the weekly and daily charts, the charts are throwing out some reversal signals too. If the selling picks up, AUD/USD could easily drop t

o 0.68 and maybe even test support around 0.67.