During the morning session, the AUD/USD pair is testing 0.7000 for a breakout, retreating from the low of April 13 against the US macroeconomic statistics.

The price is in correction, the probability of decline remains.

On the daily timeframe, the development of the third ascending wave of the higher degree (3) has commenced, encompassing the first wave of the junior level 1 of (3). On the four-hour timeframe, the formation of wave iii of 1 has been completed, and a local corrective structure is now developing as wave iv of 1, within which waves (a) of iv and (b) of iv have already been formed, while wave (c) of iv is currently in progress. If this scenario proves correct, the AUD/USD pair’s upward trend is expected to continue toward the 0.6958–0.6856 zone with a critical stop loss at 0.7187.

The AUD/USD pair is correcting in a sideways trend at 0.7052 amid the demand for the American dollar, supported by monetary and geopolitical factors. Under these conditions, high-yielding currencies, such as the Australian and New Zealand dollars, are under pressure.

During the Asian session, the AUD/USD pair is trading around 0.7180: investors are still trying to assess how April inflation data will affect the Reserve Bank of Australia’s (RBA) monetary policy decisions.