AUD/USD Forecast: Bulls eyeing an extension towards 0.7300 and beyond

Valeria Bednarik FXStreet

AUD/USD Current Price: 0.7259

The Australian Trade Balance posted a surplus of 10,495 million in April.
Resurgent commodity prices provided additional support to the aussie.
AUD/USD is technically bullish and on its way to reaching fresh multi-week highs.

The AUD/USD pair trades near a daily high of 0.7269 and at levels last seen in April, as the broad greenback’s weakness coupled with rising US equities. The American dollar was weighed by softer US government bond yields, despite persistent inflation and growth concerns. Also, softer-than-anticipated US employment figures undermined demand for the greenback.

On the other hand, the Australian Trade Balance released at the beginning of the day posted a surplus of 10,495 million in April, beating expectations of 9,300 million. Exports were up 1% in the month, while imports decreased by 1%. Firmer commodity prices add to the aussie’s strength, as gold jumped to a one-month high while copper surged roughly 5%.

On Friday, Australia will release the May AIG Performance of Construction Output, while S&P will publish the May Services PMI. The country will also publish April Home Loans and Investment Lending for Homes.

AUD/USD short-term technical outlook

The daily chart for the AUD/USD pair shows that it is currently hovering around the 200 SMA while above the shorter ones. Technical indicators, in the meantime, stand near overbought readings, with the Momentum partially losing its strength but the RSI still heading north, in line with a bullish continuation.

The 4-hour chart shows that the pair is well above a bullish 20 SMA, which keeps advancing above the longer ones. At the same time, technical indicators keep advancing well above their midlines, supporting a bullish extension toward 0.7300 and beyond.

Support levels: 0.7225 0.7190 0.7150

Resistance levels: 0.7265 0.7300 0.7340

View Live Chart for the AUD/USD

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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