The AUD/USD pair is experiencing a bearish trend, with a 0.8% decline in the European trading session on Friday. This downward pressure is primarily attributed to the US Dollar's strength, which is bolstered by rising US Treasury yields and positive trade outlooks between the US and China. The Australian economy's heavy reliance on exports to China further exacerbates the situation for the AUD. Technical analysis indicates a bearish sentiment, with the pair trading below the 20-day EMA, and the RSI suggesting fading upside momentum. The immediate support level is at 0.7100, while the resistance is at 0.7277. The US Dollar's strength is also supported by the Federal Reserve's monetary policy, which includes raising interest rates to combat inflation and strengthening the US Dollar. However, the article also mentions the potential for Quantitative Easing (QE) in extreme situations, which could weaken the US Dollar. Overall, the AUD/USD pair's bearish trend is likely to persist, with potential support levels at 0.7100 and resistance at 0.7277.
