Over the past 24 to 48 hours, the AUD/USD pair has held steady near the 0.7150 level, close to its highest levels since early June. The pair closed yesterday at 0.7161, indicating a firm market stance.

A surprise announcement from the US Treasury recently weakened the US dollar, providing further upside for the Australian dollar. Furthermore, traders are closely watching the upcoming Australian Consumer Price Index (CPI) release, expected to be a key catalyst for the next move. Additionally, expected sanctions on Iran add another layer of geopolitical risk, creating a delicate balance between risk-on sentiment and safe-haven flows.

For everyday investors, the recent stability in AUD reflects global sensitivity to US monetary policy signals alongside geopolitical tensions. Watching Australia’s inflation numbers could help gauge the Aussie’s medium-term trajectory, especially amid a softer US dollar environment, which tends to support commodity-linked currencies like the AUD.

Daily Chart

The daily chart reveals AUDUSD has recently broken above both the 50-day and 200-day moving averages, forming a bullish alignment indicative of a longer-term upward trend. Price remains near the upper Bollinger Band with lower volatility, signaling consolidation near resistance. The MACD indicates positive momentum with the signal line above the zero line, reflecting buyer dominance. The 0.7150 zone has acted as robust support multiple times, establishing a strong foundation for further gains. Overall, the daily structure favors further upside towards the yearly highs.

1H Chart

On the hourly chart, AUDUSD has consolidated between 0.7120 and 0.7170 over the last 3-5 days with Bollinger Bands tightening, reflecting diminishing short-term volatility. Recent MACD bullish crossover and RSI in neutral-to-bullish territory reinforce upward momentum. Notable bullish engulfing candlesticks have appeared, signaling short-term buyer strength. This suggests potential for further upside testing beyond 0.7170 resistance if momentum sustains.

Technical Trend:  Trend Direction: Cautiously Bullish Uptrend

Technically, AUDUSD maintains a strong uptrend on the daily timeframe, supported by positive MACD momentum and price stability above 0.7150 support. The hourly timeframe confirms recent bullish engulfing patterns, reinforcing short-term upside bias. A Bollinger Band squeeze followed by breakout would signal the next powerful bullish leg. Increased volume and momentum indicator crossovers remain key signals for entry. Investors should closely monitor economic reports for timely trade adjustments.

Today’s economic calendar highlights Australia’s 7:30am HKT release of July Consumer Price Index (CPI), forecasted at 3.3% YoY down from 3.8% previously. This release is pivotal for AUDUSD price action as a lower-than-expected CPI may pressure the Aussie. Meanwhile, at 8:30pm HKT, the US will release multiple PCE inflation and spending data, which significantly influence USD strength. Traders should watch these releases closely for cues impacting AUDUSD, as divergence from forecasts could trigger volatility.

Resistance & Support

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