AUD/USD breaks below 100-day MA on risk-off flows and technical weakness

AUD/USD has declined sharply in today's trading session, extending its recent downtrend despite the Reserve Bank of Australia maintaining a less dovish stance and keeping interest rates unchanged. The pair's weakness was primarily driven by technical factors and risk-off sentiment in global markets. Yesterday's price action saw AUD/USD briefly penetrate below the crucial 100-day moving average but managed to close near this level, indicating initial trader hesitation. However, today's decisive break below this key technical support has accelerated selling pressure, with the pair now trading at fresh multi-week lows. The failure to sustain any bounce above the 100-day MA has turned this level into immediate resistance, while traders eye the next support zone around the 200-day moving average. The combination of deteriorating technicals and risk-averse market conditions suggests further downside potential for AUD/USD in the near term, particularly if global risk sentiment continues to weaken.