AUD/USD Price Forecast: Holds steady below mid-0.7200s as bulls await Trump-Xi summit

The AUD/USD pair struggles to capitalize on the overnight bounce from the 0.7200 neighborhood and trades with a negative bias for the second straight day on Wednesday. Spot prices, however, lack bearish conviction and currently trade around the 0.7235 region as investors opt to move to the sidelines ahead of the Trump-Xi summit.

In the meantime, the US Dollar (USD) stands firm near its highest level in over one week amid reviving bets for an interest rate hike by the US Federal Reserve's (Fed), bolstered by Tuesday's hot US consumer inflation figures. Furthermore, fading hopes for a US-Iran peace deal underpin the USD's safe-haven status and contribute to capping the risk-sensitive Aussie. However, the Reserve Bank of Australia's (RBA) hawkish outlook continues to act as a tailwind for the AUD/USD pair.

Spot prices hold well above the 100-period Exponential Moving Average (EMA), keeping a mild bullish bias. Moreover, the Relative Strength Index (RSI) hovers just above the neutral 50 line, hinting at modest upside pressure. However, the Moving Average Convergence Divergence (MACD) flattens slightly below zero and suggests only tentative momentum, making it prudent to wait for acceptance above mid-0.7200s before placing fresh bullish bets on the AUD/USD pair.

On the downside, initial support is seen at the 100-period EMA around 0.7190, where a break would expose a deeper corrective pullback and weaken the current constructive tone. As long as the AUD/USD pair remains above this moving average, dips are likely to be contained, keeping the broader focus on whether buyers can sustain the recovery and build a more convincing advance in the sessions ahead.

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

AUD/USD 4-hour chart