The Australian dollar remains in a consolidation phase, hovering within a narrow range of 0.6265–0.6325. Trump's upcoming implementation of tariffs against China and a number of goods from Australia is forcing market participants to act with extreme caution, keeping the pair in consolidation.
From a technical standpoint, it remains in range-bound trading, as the initial impact of U.S. tariffs and potential countermeasures from affected countries is still unclear. The pair will most likely stay within the 0.6265–0.6325 range until the end of the current week. Its inability to rise above the 0.6325 mark may result in a pullback toward the lower boundary of the range.
Technical picture and trading idea:
The price is above the middle line of the Bollinger Bands and the 5-day and 14-day SMAs. The RSI remains above the zero mark, and the Stochastic indicator shows a local upward reversal.
The pair may decline toward 0.6265, with the likely entry point at 0.6308.
