AUD/USD Price Forecast: Aussie spikes down sub-0.7050 as RBA’s Bullock speaks

• AUD/USD ticks down below 0.7050 as RBA Governor Bullock addresses the press, following the bank's monetary policy decision.
• Bullock affirmed that economic growth needs to slow down to bring inflation lower.
• Previously, Australia's central bank had left rates on hold at 4.35% as widely expected.

The Australian Dollar (AUD) has reacted with moderate declines against the US Dollar (USD) following Reserve Bank of Australia Governor Michelle Bullock's speech on Tuesday. The AUD/USD spiked down below 0.7050, from Monday’s highs near 0.7075, as Bullock addressed the press, following the bank's monetary policy decision, to regain lost ground shortly afterwards.

The RBA left its benchmark interest rate unchanged at 4.35%, as expected, and Bullock struck a hawkish note, hinting at a likely interest rate hike in the coming months. The RBA Governor also affirmed that the domestic economy is operating “above capacity” and that it will be needed to slow down economic growth to tame inflationary pressures.

Technical Analysis: The near-term bias remains positive

AUD/USD hovers around 0.7050, holding within an upward-sloping parallel channel and retaining a mildly bullish near-term bias. Momentum indicators, however, have retreated into neutral territory with the 4-hour Relative Strength Index (14) nearing the 50 midline and the Moving Average Convergence Divergence (MACD) indicator slipping marginally into negative territory, hinting at waning upside pressure rather than a decisive reversal.

Bears would need to break the channel floor, around 0.7030 and the August 6 and 7 lows, at 0,7022 to confirm a trend shift and aim for last week's low, at the 0.6985 area. On the topside, initial resistance emerges at the horizontal barrier near 0.7085 (June 15 high), ahead of the channel top, now around 0.7120.

(The technical analysis of this story was written with the help of an AI tool. Know more.)