Australian Dollar declines due to renewed US Dollar buying

• AUD/USD plunges due to intensified US Dollar buying, reaching fresh lows near 0.6630.
• Renewed selling pressure pushes AUD/USD beneath the key 200-day SMA.
• Higher US Treasury yields and economic divergences favor the USD.

The AUD/USD pair declined by 0.97% to 0.6620 in Wednesday's session, driven by intensified US Dollar buying and concerns over China's stimulus measures. Renewed selling pressure pushed AUD/USD beneath the key 200-day SMA, highlighting the pair's vulnerability in the current market environment.

Financial markets now anticipate 50% odds of a mere 0.25% reduction in interest rates in 2024 by the RBA, which might benefit the Aussie and limit its downside.

Daily digest market movers: Australian Dollar dips amid robust US Dollar demand, lower Chinese stimulus hopes

• AUD/USD weakened amidst the robust US Dollar and waning hopes for Chinese stimulus measures.
• The International Monetary Fund (IMF) updated the growth forecast of the US economy, which benefited the USD.
• The Greenback also is gaining due to higher US Treasury yields.
• The US will report S&P PMIs data on Thursday, which might also shake the pair by the end of the week.

AUD/USD technical outlook: Bearish momentum intact despite ranging sessions

The Relative Strength Index (RSI), at 33, is near the oversold area with a sharply declining slope, suggesting that selling pressure is rising. The Moving Average Convergence Divergence (MACD) histogram is red and rising, further confirming the bearish outlook.Volume remains steady, but today's sharp 1% decline suggests increased selling interest. Support levels lie at 0.6650, 0.6600 and 0.6550, while resistance stands at 0.6700, 0.6750 and 0.6800. The overall bearish trend remains intact, indicating continued downward momentum in the short term.