AUD/USD Price Forecast: Rising 20-day EMA supports near-term bullish bias

The Australian Dollar (AUD) underperforms its major currency peers on Wednesday, trading 0.17% lower at around 0.7070 against the US Dollar (USD) during the European trading session. The antipodean faces selling pressure even as Reserve Bank of Australia (RBA) Deputy Governor Andrew Hauser has kept the door open for further monetary policy tightening.

Earlier in the day, RBA’s Hauser said, “Inflation is too high, and the central bank needs to raise interest rates to bring price pressures down.” Hauser added, “Monetary policy needs to bring inflation down and reduce demand in the economy.”

Meanwhile, the US Dollar also trades lower as fears of a Federal Reserve (Fed) interest rate hike in the September meeting have receded due to weak United States (US) data for July.

Later in the day, investors will focus on the Federal Open Market Committee (FOMC) minutes of the July policy meeting, which will be published at 18:00 GMT.

In Australia, investors will focus on the Aussie employment data for July, which will be released on Thursday.

AUD/USD Technical Analysis

AUD/USD trades at 0.7073, holding a constructive near-term bullish bias as spot remains above the 20-period exponential moving average (EMA) at 0.7045, suggesting buyers retain control on dips.

The Relative Strength Index (14) at 57.6 stays in positive territory without being overbought, hinting that upside momentum is present but not stretched.

On the downside, immediate support is seen at the 20-day EMA at 0.7045, where fresh buying interest could emerge if the pair retreats. On the upside, the August 17 high at 0.7129 is the key hurdle for the pair.