Over the past 24 to 48 hours, the AUD/USD pair has demonstrated strong upward momentum, breaking through the key 0.70 resistance level and reaching an intraday high of 0.7090—the highest since early 2023. The closing price yesterday was around 0.70475, indicating solid support for the Australian dollar recently.

The main driver behind this surge is Australia’s latest inflation data, which came in stronger than expected, boosting market bets on further rate hikes by the Reserve Bank of Australia (RBA). Meanwhile, the dovish stance from the US Federal Reserve has kept the US dollar weak, benefiting Asian currencies including the AUD.

For the average investor, this can be likened to the Australian dollar receiving a powerful push: inflationary pressures in Australia increase the likelihood of central bank rate hikes, bolstering the currency’s value, while the easing US monetary policy weakens the dollar, positioning the AUD as a strong performer. These fundamental factors and price moves suggest traders may rethink their forex holdings to favor the Australian dollar.

Daily Chart

The daily chart exhibits a clear bullish trend with prices consistently staying above both the 50-day and 200-day moving averages, indicating strong medium to long-term buying interest. The Bollinger Bands have expanded, pointing to increased volatility, with multiple touches at the upper band confirming strong momentum. The MACD indicator is in a positive bullish alignment and expanding, supporting further upside. Overall, the daily technical picture suggests a robust uptrend, affirming the ongoing bullish sentiment.

1H Chart

On the hourly chart covering the last 3-5 days, AUDUSD is moving within a well-defined ascending channel with price repeatedly bouncing off support lines. Short-term moving averages (20 and 50 EMA) have recently crossed bullishly, reflecting renewed buying momentum. The price clings near the upper Bollinger Band, backing short-term strength. Notably, recent candlesticks formed a bullish engulfing pattern, signaling an immediate continuation of the upward trend in the next 24 hours.

Technical Trend:  Current trend: Decisively Bullish

Technically, the MACD remains positive and building momentum, while the recent bullish engulfing candlestick on the hourly chart confirms buyer dominance in the short term. Prices holding firmly above key moving averages reinforce the prevailing uptrend. Traders should watch for volume spikes to confirm trend strength. A sustainable break above the key 0.71 resistance could trigger a fresh wave of buying interest.

Today’s economic calendar includes key Australian import and export price data released at 01:30 GMT+1, showing stronger-than-expected increases that support the AUD. Japanese Consumer Confidence data at 06:00 also beat forecasts, potentially boosting sentiment in Asia-Pacific markets. Other European and US data scheduled today have limited direct effect on AUDUSD in the near term. Overall, these Australian data points are predicted to enhance investor confidence in the Australian dollar and lend positive support to the AUDUSD price.

Resistance & Support

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