FundamentalOverviewThe USD rallied across theboard last week after a slate of strong US data. The focus was mainly on Jobless Claims which beat expectations by a bigmargin with Initial Claims falling to the lowest level since July andContinuing Claims improving further. This triggered a hawkish repricing ininterest rates expectations since the Fed started cutting rates solely due toweaker labour market data. This means that if wecontinue to get stronger labour market data, the Fed could start turning morehawkish again and we might not get another cut in October, or more probably inDecember. Therefore, there’s still plenty of room for the US dollar to appreciatein case of strong data as the market’s pricing remains too dovish. The Fedprojected 75 bps of easing by the end of 2026, while the market is stillpricing 104 bps. The greenback erased allthe gains triggered by last week’s data in the meantime as we are likelyexperiencing a pullback after a very strong rally. Other possible reasonsinclude the government shutdown fears and quarter-end flows. On the AUD side, the RBA isexpected to keep interest rates steady tomorrow following a benign employmentreport, higher than expected monthly inflation data and slightly hawkish RBA’s Bullock remarks. Traders will be focused onforward guidance and how Governor Bullock frames the balance of risks. At themoment, the market is pricing just a 60% chance of another rate cut this year.AUDUSDTechnical Analysis – Daily TimeframeOn the daily chart, we cansee that AUDUSD extended the drop from the top trendline with the sellers continuingto target the 0.6350 support zone. There’s not much else we can glean fromthis timeframe, so we need to zoom in to see some more details.AUDUSD TechnicalAnalysis – 4 hour TimeframeOn the 4 hour chart, we cansee that we have a strong resistance zone around the 0.6580 level where we canfind the confluence of the downward trendline and theold support. This is where we can expect the sellers to step in with a definedrisk above the resistance to position for a drop into the 0.6484 level. Thebuyers, on the other hand, will want to see the price breaking higher to extendthe rally into the 0.6628 level next.AUDUSD TechnicalAnalysis – 1 hour TimeframeOn the 1 hour chart, we cansee that the price is breaking below the upward trendline that was defining thebullish momentum on this timeframe. We can expect the sellers to pile in aroundthese levels to position for a drop into new lows, while the buyers will likelywait for a break to the upside to invalidate the bearish setup and target newhighs. The red lines define the average daily range for today. Upcoming CatalystsTomorrow we have the RBA policy announcement, the US JobOpenings data and the US Consumer Confidence report. On Wednesday, we have theUS ADP and the US ISM Manufacturing PMI. On Thursday, we get the latest USJobless Claims figures. On Friday, we conclude the week with the US NFP reportand the US ISM Services PMI. Keep also an eye on Fed speakers. This article was written by Giuseppe Dellamotta at investinglive.com.