Societe Generale analysts, including Kenneth Broux, have highlighted growing downside risks for the Australian Dollar against the US Dollar (AUD/USD) after the currency pair failed to maintain its position above the 50-day moving average. The analysts note that AUD/USD has established a pattern of lower highs and lower lows on the daily chart, which signals the beginning of a short-term pullback [1].
The pair has recently carved out an interim low around 0.6980, and Societe Generale identifies 0.7140 as a key resistance level. According to the analysts, unless AUD/USD can reclaim the 0.7140 level, the decline is likely to persist, with technical downside objectives at 0.6890 and 0.6830 [1]. The report also mentions that the currency's fundamentals are currently influenced by iron ore prices and US real interest rates [1].
No specific market reactions or forward-looking statements from other analysts are provided in the source. The focus remains on the technical outlook and the importance of the 0.7140 resistance level for the near-term direction of AUD/USD [1].
CONCLUSION
Societe Generale sees a risk of further declines in AUD/USD if the pair fails to reclaim 0.7140, with technical targets at 0.6890 and 0.6830. The outlook is driven by technical weakness and external factors such as iron ore and US real rates, suggesting caution for traders in the near term.