Over the past 24 to 48 hours, the AUD/USD pair experienced notable volatility, fluctuating between 0.71163 and 0.71644 from yesterday’s closing price of 0.71539 and ultimately holding at relatively high levels. The ongoing disruption around the Strait of Hormuz has pushed energy prices higher, fueling inflation concerns which in turn boosted risk appetite. Concurrently, strong U.S. economic data lifted U.S. Treasury yields, prompting dynamic fund flows between the U.S. dollar and the Australian dollar.

Meanwhile, the upcoming critical Australian employment data has heightened market expectations, encouraging the Aussie to gain momentum. This reflects investor confidence in Australia’s economic resilience and the potential for a more hawkish stance from the Reserve Bank of Australia. Additionally, the U.S. President’s decision to suspend planned attacks on Iran temporarily eased geopolitical tensions, further supporting risk-on sentiment and giving the AUD/USD pair an upward lift.

For the average investor, this recent price action can be likened to navigating a boat on turbulent waters — geopolitical risks and major economic data are like waves continuously hitting the vessel, while the Australian dollar’s resilience represents the boat adjusting its course to avoid major setbacks. Overall, the last two days’ market dynamics indicate sustained optimism on the short-term fundamentals for the AUD/USD, highlighting the importance for investors to closely monitor upcoming economic releases.

Daily Chart

The daily chart reveals a solid bullish trend with the moving averages aligned positively; the 50-day moving average remains above the 200-day, confirming medium-to-long term strength. Bollinger Bands have expanded following a period of contraction, indicating rising volatility. The MACD sits comfortably above zero with widening separation between its lines, emphasizing strong momentum. A recent breakout above the 0.71-0.72 range signals potential continuation upward, reflecting aggressive buying pressure.

1H Chart

Examining the past 5 days on the hourly chart, AUDUSD has traded sideways between 0.7120 and 0.7160, recently breaching the 0.7150 resistance level. Bollinger Bands are narrowing, hinting at a potential surge in volatility following this consolidation. The MACD recently formed a bullish crossover while RSI holds near 60, confirming ongoing positive momentum. However, short-term traders should watch for pullbacks to key support at 0.7120 for potential entry points.

Technical Trend:  The current trend is decisively bullish with stable upward momentum following a consolidation phase.

Technical signals point to a clearly bullish AUDUSD trend with confirming strong momentum on daily charts. The key breakout above 0.7150 supports further gains, with Bollinger Bands expanding to accommodate higher volatility. A recent notable candlestick is a strong bullish candle signaling aggressive buyer interest. While geopolitical and commodity price risks linger, the overall setup favors the Aussie rally to test multi-year highs near 0.72. Traders should monitor momentum signals and key levels for optimal trade timing.

There are no significant or directly relevant economic events scheduled today that would impact AUDUSD. Market focus remains on earlier risk sentiment shifts and commodity price movements. Upcoming Australian and US economic releases will provide more directional cues in the near future.

Resistance & Support

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