The Australian Dollar (AUD) ended the week with notable strength, gaining over 0.82% on Friday and more than 1.20% for the week, as the US Dollar weakened following the US Treasury Department's announcement of a bond buyback targeting the long end of the curve [1]. The AUD/USD currency pair traded at 0.7170 after rebounding from a low near 0.7067 [1].
Technical analysis indicates that the uptrend in AUD/USD has resumed, with the pair reclaiming the 100-day Simple Moving Average (SMA) at 0.7969 and breaking above the June 4 daily high of 0.7149, which has opened the door for further gains [1]. The Relative Strength Index (RSI) signals bullish momentum, suggesting that the path of least resistance remains to the upside [1].
Key resistance levels to watch include the May 29 high at 0.7200, which, if breached, could pave the way for a challenge of the year-to-date (YTD) high at 0.7227. Further strength could see the pair targeting the 0.7300 level [1]. On the downside, a drop below 0.7100 could lead to a move toward the 100-day SMA at 0.7069, with additional support at the 50-day SMA at 0.6999 [1].
The article also notes that the Australian Dollar is influenced by factors such as interest rates set by the Reserve Bank of Australia (RBA), commodity prices (especially iron ore), the health of the Chinese economy, and overall market sentiment [1].
CONCLUSION
The AUD/USD pair has shown strong bullish momentum, driven by a weaker US Dollar and positive technical signals. Traders are now watching key resistance levels, with the potential for further gains if these are breached. Market sentiment remains optimistic for the Australian Dollar in the near term.