Ella 
AUD/USD attracts some selling around 0.6530, down 0.65% on the day
Initial support at 0.6525; 0.6560 acts as short-term resistance
AUD/USD remains under pressure and is trading around 0.6530 ahead of the European open on Tuesday. AUD/USD was pressured by prevailing dollar buying following hawkish comments from Atlanta Fed Governor Michelle Bowman. The pair is currently trading around 0.6531, down 0.65% on the day.
In addition, mixed Chinese and Australian data, coupled with headlines about the geopolitical conflict between Japan and China, put pressure on China’s currency AUD, limiting AUD/USD gains.
However, any intraday pullback above 0.6525 (bottom of the Bollinger Band) could point the Aussie towards the next support level in the 0.6490 area (26 May low). Further down, the next targets are the May 31 lows of 0.6460 and 0.6400 (the confluence of psychological round numbers and November 2022 lows).
On the upside, some follow-through buying could push the Aussie up to the upper Bollinger Band 0.6560 and 0.6600–0.6610 areas. The above level is the confluence of the psychological round number and the 50 hour EMA. Afterwards, Aussie has room to test 0.6655 (100 hour EMA) and 0.6700 (July 31 high, round numbers). The RSI is below 50, temporarily challenging the pair’s short-term downside.
