AUD/USD surrenders Monday’s gains after RBA pauses for second meeting. Economists at Société Générale analyze the pair’s technical outlook.

Break above 0.6840 is essential to affirm an extended up-move

AUD/USD failed to overcome the hurdle of 0.6900 representing the descending trend line drawn since April 2022 (now at 0.6840) and high of June; this has resulted in a steady pullback. 

A revisit of 0.6560/0.6520, the 76.4% retracement from May is not ruled out. Defence of this zone can lead to a bounce however it would be interesting to see if the pair can reclaim the trend line at 0.6840; this break is essential to affirm an extended up-move.