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AUD/USD experienced a sharp decline of approximately 1% on Thursday, closing near 0.7010 after intraday testing below the critical 0.7000 psychological level. This follows two consecutive bearish sessions that erased most of the week's initial gains, marking a reversal from a prior rebound seen on Tuesday. The move highlights renewed pressure on the pair amid evolving risk sentiment and potential shifts in monetary policy expectations. The slide toward 0.7000 is significant as it represents a key support level for traders. A sustained break below this threshold could trigger further declines, potentially targeting 0.6950 or lower, while a rebound might reinvigorate short-term bullish momentum. Traders are closely monitoring technical indicators and the Reserve Bank of Australia's (RBA) policy trajectory for clues on the pair's near-term direction. For global forex markets, this volatility underscores the sensitivity of commodity-linked currencies like the AUD to macroeconomic shifts. Investors should watch upcoming RBA meetings and U.S. Federal Reserve policy signals, as divergences in central bank approaches could amplify AUD/USD swings. Additionally, economic data from Australia and the U.S. will remain pivotal in shaping the pair's path.
