Over the past 24 to 48 hours, the AUD/USD exchange rate has continued its robust rebound, closing yesterday at 0.67114, sustaining the recent momentum above the 0.6700 level. During the European trading session, the pair reached a fresh yearly high near 0.6717, the highest in over a year.

The key drivers behind the Australian dollar’s strength include the hawkish signals from the recent Reserve Bank of Australia (RBA) meeting minutes, indicating the possibility of continued rate hikes to combat inflationary pressures, which enhanced the appeal of the AUD. Additionally, rising global commodity prices, particularly those linked to Australia’s exports, bolstered market confidence in the currency. Meanwhile, a weaker US dollar during this period further supported the Aussie’s gains.

For the average investor, this means the AUD’s recent surge is no accident but rather a result of multiple positive factors aligning, reflecting strong fundamental support and a shift in market risk sentiment. In a backdrop of global economic uncertainties, investors are backing the AUD to benefit from favorable export prospects and the central bank’s monetary policy stance.

Daily Chart

The daily chart shows a sustained uptrend since early in the year with the 50-day moving average comfortably above the 200-day, confirming a strong long-term bullish trend. Bollinger Bands indicate prices are near the upper band suggesting strong buying momentum but potential for short-term pullback. The MACD shows expanding bullish momentum with a golden cross, reinforcing the upward trend outlook.

1H Chart

The hourly chart over the past 3-5 days reveals price consolidation between 0.6650 and 0.6717, with a recent breakout above 0.6700 triggering a bullish phase. Short-term moving averages are aligned bullishly, MACD remains positive with no signs of a bearish crossover, and RSI is elevated but not overbought. Bollinger Bands widening points to possible increased volatility ahead, supporting further rallies.

Technical Trend:  The overall trend is decisively bullish, with strong momentum and supportive moving average alignment pointing to sustained upside potential. Market sentiment favors buyers, making it critical to watch key resistance levels for potential breakout opportunities.

Technically, AUDUSD has formed a rising triangle pattern starting around 0.6660, with a confirmed breakout past 0.6700 which strengthens bullish bias. Recently observed bullish engulfing candlestick combined with increased volume around 18:00 confirms buying pressure likely to continue in next 24 hours. MACD histogram expansion and fast line trending above zero further underscore strong bullish momentum.

Today’s economic calendar features a speech by Bank of Japan Governor Ueda, which is unlikely to have significant direct impact on AUDUSD. No major economic data or events relevant to AUDUSD are scheduled. Traders should remain attentive to upcoming Australian and US economic releases for possible market-moving developments.

Resistance & Support

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