The AUD/USD currency pair returned to its daily low and lost half of its weekly gains. A horizontal pullback and a bearish MAX crossover are good signs for sellers. Bears are drawn to the 61.8% Fibonacci retracement level; buyers need to cross 0.7050.

Since the bearish moving average crossover happened and the pair couldn’t get over the short-term critical hurdle, AUD/USD sellers have a better chance of making money.

Convergence of the SMAs at 0.6935-30 seems to be the most crucial support right now before the quote returns to the 61.8% Fibonacci retracement level of the uptrend from July to August, which is near 0.6850.

The Aussie-US dollar pair may have gone down because markets feel better about China and the US. Recent geopolitical events and Fed Chair Jerome Powell speaks at the Jackson Hole Symposium with a cautious tone seem to have hurt bulls.

The stock market is more optimistic because of China’s latest stimulus plan and local institutions working together to protect the world’s second-largest economy. There may be a link between mildly good US data and cautiously optimistic Fed statements. Political fights between the US and China and US President Joe Biden’s words about Iran have recently hurt market confidence and AUD/USD values.

Before Fed Chair Powell’s speech, it could be a rough day for AUD/USD traders. Aussie pair traders may be interested in the US Core PCE Price Index, the Fed’s favourite measure of inflation. Growth year-over-year may be at 4.7%, down from 4.8%, and growth month-to-month might be 0.3%, down from 0.6%.

Conclusion:

The AUD/USD pair’s bulls need to get back in charge from the 0.7050 swings high in early August.