Over the past 48 hours, the Australian Dollar against the US Dollar (AUD/USD) has exhibited notable bullish momentum, closing higher than yesterday’s price of 0.7177. This rally has been supported by a combination of strong Australian economic data and an improved global appetite for risk assets.

According to the latest market news, the recent strength in AUD is primarily driven by Australia’s solid fundamentals and a favorable yield premium attracting capital inflows. Notably, the report titled “AUD/USD Forecast: Aussie Eyes 0.72715 as Broad Strength Supports Bullish Renko Breakout” highlights that a strong Renko structure alongside robust Aussie economic strength supports a potential breakout above the key resistance at 0.72715.

Moreover, despite softer Consumer Price Index (CPI) readings, articles such as “Australian Dollar finds a saviour in data centres” indicate that sectors like data centres are providing underpinning support to the Aussie, mitigating concerns from weaker inflation data. Additionally, “AUD/USD rebounds on Middle East deal hopes after soft jobs data” shows that improving geopolitical outlooks have buoyed buyers, offsetting negative sentiment from disappointing employment figures.

For the average investor, the recent AUD strength essentially reflects growing market confidence in Australia’s economic fundamentals and rising risk sentiment. Even with some softening economic indicators, capital flows and geopolitical factors are collectively driving a positive market reaction. Accordingly, the AUD/USD pair has steadily gained ground over the last two days and is expected to continue climbing once it decisively breaks above key resistance levels.

Daily Chart

The daily chart illustrates a sustained upward trend for AUDUSD in recent weeks, with prices steadily breaking above the 50-day and 200-day moving averages. Bollinger Bands are widening, indicating increased volatility, while the MACD remains comfortably above zero, signaling strong bullish momentum. The uptrend began after a rebound from recent lows, and buyers remain in control. Price is approaching the important 0.72715 resistance, where a confirmed breakout would validate continuation of the rally.

1H Chart

The hourly chart over the past 5 days shows phase-wise consolidation amid an overall positive bias. Prices mostly stay above the short and long-term moving averages, which are aligned bullishly. Bollinger Bands, after squeezing, have started to expand, suggesting an impending move. The MACD forms a golden cross and momentum bars increase, pointing to strengthening short-term buying pressure. The formation of a minor ascending flag pattern signals a potential breakout higher, with close attention needed near the 0.7200 level.

Technical Trend:  The current trend is decisively bullish, indicating strong upward momentum.

Technical indicators show AUDUSD in a strong bullish trend, with the daily MACD sustained above zero and the hourly chart showing a bullish MACD crossover accompanied by Bollinger Bands expansion. The recently formed ascending flag is approaching a critical resistance near 0.72715; a decisive breakout here could trigger a fresh upward leg. Volume remains steady; traders should watch for volume confirmation to increase trade confidence.

Today’s economic calendar features China’s May Manufacturing and Services PMI releasing at 03:30 (GMT+1). Forecasts are close to prior readings, suggesting limited surprises. Since AUDUSD pricing is primarily influenced by USD and AUD fundamentals, and China’s data impact is more medium to long-term, no immediate significant or direct economic events today are expected to trigger sharp movements in AUDUSD.

Resistance & Support

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