The AUD/USD pair is experiencing a bearish trend, with a 0.8% decline in the European trading session, as the US Dollar strengthens against its peers. This is primarily due to the surge in US Treasury yields and positive trade outlook comments from Washington and Beijing. The Australian economy, heavily reliant on exports to China, is also affected by this scenario. The technical analysis suggests a near-term bearish bias, with the pair trading below the 20-day EMA. The RSI indicates fading upside momentum, and the first level to beat for buyers is the 20-day EMA. A daily close above this area could ease immediate downside pressure and open the way for a further recovery. However, the pair could slide towards the April 29 low if the ongoing decline persists. The US Dollar's strength is also influenced by the Federal Reserve's monetary policy, which includes adjusting interest rates and implementing Quantitative Easing (QE) or Quantitative Tightening (QT) measures. The Fed's mandates of price stability and full employment shape its interest rate decisions, impacting the US Dollar's value and global currency markets.
