AUD/USD: Recovery After a Sharp Decline

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AUD/USD fell sharply to a two-month low around 0.6410 after the USD strengthened significantly, driven by reduced market expectations of a Fed rate cut in September, while the RBA kept interest rates unchanged, providing no additional support for the Aussie. However, following the heavy selling pressure, the pair staged a technical rebound toward 0.6490, mainly supported by USD profit-taking, though this is not yet a signal of a sustainable bullish trend.

On the chart, the 0.6480 support level is still holding, and price is now moving toward the 0.6520 resistance zone. A breakout above this level could reinforce short-term bullish momentum and extend the recovery. Conversely, failure to break higher may lead to a pullback toward 0.6445, or even a retest of the 0.6414 low.

In the current context, this is viewed as an important technical rebound after a steep drop, but not yet enough to confirm a long-term uptrend. Traders should carefully watch the market’s reaction around the 0.6520 resistance before deciding on their next strategy.
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