• AUD/USD struggles to extend its upside above 0.6900, while its upside remains firm.
• The Australian Dollar remains firm as the RBA is expected to keep interest rates steady at their current levels for the entire year.
• Firm Fed large rate cut bets weigh on the US Dollar.

The AUD/USD pair edges lower after posting a fresh yearly high around 0.6900 in Wednesday’s North American session. The broader outlook of the Aussie asset remains firm as the Reserve Bank of Australia (RBA) signaled in its monetary policy meeting on Tuesday that interest rates will remain at their current levels by the year-end.

The Australian Dollar (AUD) is also strengthened by the announcement of China’s massive stimulus to boost household spending and revive the real estate sector. Being a proxy for China’s economic growth, the AUD receives higher flows if China’s outlook improves.

Meanwhile, the US Dollar (USD) has fallen back after a short-lived recovery. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, retreats to 100.20, the lowest level seen in more than a year.

The US Dollar would continue to face pressure as market participants expect that the Federal Reserve (Fed) will cut interest rates consecutively for the second time by 50 basis points (bps) in the November monetary policy.

AUD/USD reclaims the horizontal resistance plotted from 28 December 2023 high of 0.6870 on a daily timeframe. The near-term trend is bullish as the 20-day Exponential Moving Average (EMA) at 0.6770 is sloping higher.

The 14-day Relative Strength Index (RSI) shifts above 60.00, suggesting an active bullish momentum.

The Aussie asset will witness a fresh upside move if it breaks above the intraday high of 0.6910, which will drive the asset to near the 16 February 2023 high of 0.6936, followed by the psychological resistance of 0.7000.