The AUD/USD pair is experiencing a downward trend, influenced by a combination of factors including US-Iran tensions, rising crude oil prices, and inflationary concerns. This has led to a bearish gap opening and a retreat from the 0.6970 region, with spot prices dropping to the 0.6930-0.6925 area during the Asian session. The US Dollar (USD) is strengthening as a safe-haven asset, while the AUD/USD pair is struggling to maintain its recent recovery from a multi-month low touched in June. The technical setup is mixed, with the currency pair staying above the 200-day Simple Moving Average (SMA) and the 50.0% Fibonacci retracement level, but the Relative Strength Index (RSI) around 42 indicates only a tentative improvement. The market is now focused on the latest US inflation figures, which could impact the AUD/USD pair's trajectory. The immediate support is at the 200-day SMA at 0.6878, followed by the 50.0% retracement level at 0.6849. A deeper protection level is at the 61.8% Fibonacci level around 0.6747. On the upside, a sustained strength beyond the 38.2% Fibonacci level at 0.6951 is needed to unlock additional gains. The AUD/USD pair's performance is also influenced by the broader currency market, with the US Dollar being the strongest against the Australian Dollar, as indicated by the percentage change table and heat map.
