Over the past 24 to 48 hours, the AUD/USD currency pair has exhibited relative stability, trading within a range of 0.7044 to 0.7071, slightly above yesterday’s closing price of 0.70577. Market participants have adopted a cautious stance awaiting key US Non-Farm Payroll (NFP) data, seeking clearer economic signals.

Recent reports highlighted that a weaker US dollar, a stronger Japanese yen, and hopes of de-escalation in the Middle East supported the rise in AUD/USD, leading to the highest weekly close in seven weeks. The Reserve Bank of Australia’s hawkish stance and robust commodity prices underpin AUD/USD, but geopolitical risks and uncertainties surrounding US inflation and employment figures have capped short-term gains.

For investors, the current market environment can be likened to an audience waiting for a crucial announcement — the AUD/USD is finding support around the key psychological level of 0.7000, akin to a tense game tied at a pivotal score. Going forward, the upcoming NFP data and geopolitical developments will be critical triggers. Traders should stay alert to these major news events to navigate future price movements effectively.

Daily Chart

The daily chart shows AUDUSD successfully breaking above a major descending trendline, signaling a shift to a longer-term bullish trend. Price is currently supported near the 100-day simple moving average (SMA), with Bollinger Bands showing volatility contraction and MACD indicating a bullish crossover. Overall, the chart points towards completion of the corrective phase and the beginning of a new upward impulse.

1H Chart

The hourly chart over the last 3-5 days reveals a strong rebound off the key psychological support at 0.7000. Price remains above the 20 and 50-period exponential moving averages (EMAs), confirming short-term bullish momentum. Bollinger Bands have widened alongside rising volume, and the MACD histogram expands positively with the signal line trending upward, suggesting further upside. No significant reversal signals are present, maintaining a buy-favored bias.

Technical Trend:  Current Trend: Decisively Bullish

Technically, AUDUSD bulls have regained control with the daily chart breakout of the descending trendline, backed by a MACD golden cross and expanding Bollinger Bands signaling strengthening momentum. The key level to watch is resistance at 0.7100, a battleground for short-term buyers and sellers. A strong bullish candlestick with no lower wick in recent sessions confirms buyers’ commitment. Traders should monitor volume and the upcoming US inflation data for possible catalysts.

Today’s economic calendar features no major events directly tied to the Australian dollar. The US Consumer Price Index (CPI) for July, a crucial data point for global FX markets, is scheduled for release later tonight (GMT+1 14:30, HK time 21:30). Other economic releases from Germany, Italy, and China are minor and unlikely to impact AUDUSD immediately. Therefore, today’s market focus is on awaiting the US CPI data to gauge the dollar’s direction.

Resistance & Support

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