After a serious strengthening since the beginning of the month, last week turned out to be unsuccessful for the Australian dollar and disappointing for buyers of the AUD/USD pair.
Last week pushed the AUD/USD pair to the level 0.6670, which half leveled the achievement of this month, which has not yet ended.
In particular, this was facilitated by the moderately hawkish statements of Fed Chairman Powell, made last week in Congress, where he confirmed that it would be "advisable to raise rates again this year and possibly two more times."
Weak macro statistics, received from Australia last week, became an additional negative factor for the AUD.
Also, pressure on the Australian dollar was exerted by the decision last week of the People's Bank of China to cut the interest rate by 10 basis points, to 3.55%, which indicates the concern of the leadership of the Chinese Central Bank about the slowdown in economic growth (by the way, S&P Global recently published a report on the prospects for the Chinese economy , which refers to the decline in China's economic growth forecast for 2023).
Thus, the negative fundamental factors prevailed over the positive ones, which was reflected in the AUD/USD dynamics by a decrease in quotations.
During today's Asian session, AUD/USD was trading in a range around 0.6675, Friday's closing price, and pressure appears to remain on the pair, setting the stage for further declines in a long-term bear market.
In an alternative scenario, a breakout of the important resistance level of 0.6705 may become a signal for resuming long positions. A breakdown of the key resistance level 0.6755 and the resistance level 0.6780 will open the way for further growth to the key resistance levels 0.6975, 0.7040, 0.7060 separating the long-term AUD/USD bearish trend from the bullish one.
Support levels: 0.6600, 0.6500, 0.6455, 0.6390, 0.6285, 0.6200, 0.6170
Resistance levels: 0.6705, 0.6730, 0.6755, 0.6780, 0.6800, 0.6900, 0.6975, 0.7000, 0.7040, 0.7060, 0.7100
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