The AUD/USD pair continues its upward trend, reaching a fresh three-week high on Tuesday. This surge comes as the Reserve Bank of Australia (RBA) maintains a hawkish stance, while the US Dollar (USD) faces pressure ahead of US PPI data. The technical outlook remains bullish, with potential for further gains.
With the RBA’s support and stable global equity markets, the Australian Dollar (AUD) is gaining momentum. In contrast, the USD is struggling amid expectations of significant interest rate cuts by the Federal Reserve. As a result, the AUD/USD pair is poised for more upside, although caution is advised ahead of key US inflation figures.
Technically, a break above the 200-day SMA resistance could trigger more buying interest, pushing the pair towards the 0.6655 level and beyond. On the downside, key support levels include 0.6575 and 0.6545, with further support at 0.6520 and 0.6500. A breach of these levels could signal a reversal in the current uptrend.
AUD/USD Daily Chart
Economic Indicator: Producer Price Index (YoY)
The Producer Price Index released by the Bureau of Labor Statistics measures price changes in US markets by producers. A high reading is positive for the USD, while a low reading is negative. For more details, click here.
Overall, the AUD/USD pair is on an upward trajectory, supported by the RBA’s stance and USD weakness. Traders should monitor key levels for potential reversals and market sentiment for further insights into future price movements.