The AUD/USD pair has been on a downward trend, but it’s approaching oversold territory, which could signal a potential reversal or consolidation.

Key Factors Influencing AUD/USD:

• Global Economic Conditions: Global economic uncertainties, including concerns about a potential recession, have weighed on the Australian Dollar.
• Interest Rate Differentials: Interest rate differentials between Australia and the US have also impacted the pair.
• Commodity Prices: As an export-oriented economy, Australia’s currency is sensitive to commodity prices, particularly those of iron ore and coal.

Technical Analysis:

• Oversold Conditions: The pair is nearing oversold levels, as indicated by the Relative Strength Index (RSI). This suggests that a short-term pullback or reversal may be on the horizon.
• Support Levels: The 0.6465 – 0.6475 level is a key support zone. A break below this level could lead to further downside.
• Resistance Levels: The 0.6600 level could act as a significant resistance level.