Australian dollar drops significantly amid risk-off sentiment ahead of the widely anticipated 25 basis point rate cut by the RBA.

The AUD/USD pair extended its decline for a third straight session, accelerating losses early Monday by nearly 1% during Asian and early European trading, and sliding to its lowest level in almost two weeks after briefly dipping below the key 0.6500 psychological mark.

Renewed risk aversion, fueled by uncertainty surrounding U.S. tariff developments, eroded investor confidence and drove demand away from the risk-sensitive Aussie dollar in favor of the safer U.S. dollar.

Technically, the pair’s outlook deteriorated after breaking below the 10- and 20-day moving averages (at 0.6542 and 0.6519, respectively), while a false breakout above the 61.8% Fibonacci retracement of the 0.6942–0.5914 downtrend on the weekly chart added to bearish signals.

Sellers are now testing support at the daily Kijun-sen (0.6481), with stronger support seen at 0.6455—the top of the thick ascending daily Ichimoku cloud and the 61.8% Fibonacci retracement of the 0.6372–0.6590 rally. A firm break below this level could trigger deeper losses toward the 200-day moving average at 0.6413 and the June 23 swing low at 0.6372.

Further pressure is expected as markets await Tuesday’s Reserve Bank of Australia policy meeting, where a 25 basis point rate cut is widely anticipated.

Res: 0.6519; 0.6542; 0.6563; 0.6579
Sup: 0.6481; 0.6455; 0.6413; 0.6372