• AUD/USD bears eye a downside correction around key US events.
• The bears are on the backside of the prior bullish trendline, leaving the bias bearish. 

AUD/USD was pressured on Monday from bullish cycle highs near 0.6773 and the pair now consolidates ahead of key events on the US calendar this week, starting Tuesday.  The May inflation rate on Tuesday will be a key focus and could shift the needle ahead of the Federal Reserve interest rate decision.  Meanwhile, the US Dollar inched higher on Monday, trading in a narrow range as investors remained cautious ahead of several key policy decisions due this week, with the Federal Reserve expected to keep rates on hold for the first time since January 2022.

On the charts, traders will note the resistance that the pair has run into as follows:

AUD/USD weekly chart

AUD/USD daily chart

A bearish correction could come into play as the charts above show.

AUD/USD H4 chart

From a 4-hour perspective, the pair is on the backside of the prior bullish trendlines and this leaves a bearish bias on the charts for the days ahead.