- Summary:
- AUD/USD climbing above 0.6370 as the US dollar weakens. Basic levels, market drivers, and what's next for Australian dollars?
The AUD/USD extends the reversal momentum today, climbing above 0.6370, while the USD has weakened the entire board. The move marks a solid rebound from sharp April sinking, with the bulls now looking at a break above the 0.6400 handle, a level trapped by some recent advancement.
Stronger trading data in Australia and elastic commodity prices, both of which have the potential in favor of Aussie, also strengthened the appetite. However, in the market still melting the broader impact of the US interest rate direction, the pair remains vulnerable to short-term reflection, especially if the wobbles sentiment.
Technical Outlook: Key AUD/USD support and resistance levels
Immediate support:
- 0.6320-minor pullback zone
- 0.6260-deman zone from Mid-April Bounce
- 0.6200- Double Bottom Base before the breakout
Reverse resistance:
- 0.6400-psychological barrier and local high
- 0.6450- neckline of March destruction
- 0.6525- February Rourgers and Resistance to Trendline
The current structure shows a potential continuation of continuity, but the price must definitely be alear 0.6400 to unlock the room towards 0.6450. Failure to handle 0.6320 can lead to a larger breakout zone around 0.6260.
What is Australia's dollar driving today?
Australia's dollar has found fresh tailwinds as USD strength begins to resolve. Wednesday's slow-looking US PMI data promotes confidence in Fed's Hawkish bearing, while Australian economic indicators, including commodity export data, remain stable.
China, Australian's leading trading partner, also indicated more infrastructure expenditure, supporting Australian Iron exports. Add to the occupied US yields and the case for short -term AUD strength becomes stronger, even though the risk of the geopolitical and fed event will remain major headwinds.
Outlook: What's next for AUD/USD?
Short -term bias develops in the pair that re -form the soil after washing the last week below 0.6100. But the bulls had to clear 0.6400- 0.6450 to signal a real move to medium-term momentum. Otherwise, the risks of Aussie are shocking or worse rotation back to the 0.6200- 0.6250 zone if the dollar's strength returns.
