The Australian dollar has extended its decline against the US dollar, breaking through the May low near 0.7070 and now testing critical support between 0.6870 and 0.6830, according to Societe Generale analysts. This zone aligns with both the 200-day moving average and March lows, making it a pivotal technical level for the currency pair. The bank emphasizes that this support area has proven significant, having previously held during November 2025’s correction, suggesting potential for a rebound if the level holds again.
Traders and currency strategists should watch this range closely as a break below could trigger further downside momentum, while a bounce would confirm the zone’s strength as major support. The AUD’s weakness reflects broader risk sentiment pressures affecting commodity currencies against the safe-haven dollar.
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FXnCO Insight
** Watch for price action around 0.6830-0.6870 with tight stops, as this double-tested support zone will likely determine whether AUD/USD rebounds or accelerates lower toward fresh multi-month lows.
Source: FXStreet