AUD/USD The Price Declines To 0.6600 As The RBA Maintains Its Neutral Policy Stance

After a lackluster retracement to near 0.6611 during the Tokyo session, the AUD/USD pair has sensed selling pressure. As the USD Dollar Index (DXY) completes its minor corrective move, the Australian dollar has resumed its decline.

In anticipation of the United States Gross Domestic Product (GDP) (Q1) data, investors are anticipated to transfer their funds into the US Dollar. From the previous reading of 2.6%, a decline to 2.0% is expected. The market anticipates a decline in GDP figures because companies have delayed expansion plans to prevent higher interest obligations.

Following Wednesday's gentle landing of inflation data, the Australian Dollar experienced a severe sell-off. The persistent decline of the Australian Consumer Price Index (CPI) suggests that the Reserve Bank of Australia (RBA) will maintain the status quo with interest rates.

AUD/USD is on a bearish trajectory following the daily disintegration of the Inverted Flag chart pattern. A lengthy consolidation is followed by a collapse in the preceding chart pattern, which is a trend continuation pattern.

The 20-period Exponential Moving Average (EMA) near 0.6680 is a barrier for Australian dollar investors.

The Relative Strength Index (14) has moved into the bearish zone between 20.00 and 40.00, indicating the initiation of downward momentum.

The US Dollar bulls will exercise their biceps if the Australian asset falls below the 0.6590 low from March 15. A similar event would expose the asset to a low of 0.6568 on March 8, followed by a high of around 0.6500 on November 2, 2022.

In an alternative scenario, only a definitive move above the round-level resistance of 0.6800 will propel the asset toward the high of 0.6872 on February 23 and the high of 0.6920 on February 20.