AUD/USD Price Forecast: Poised to test multi-year top near 0.7270-0.7275 amid bullish setup
- AUD/USD continues to draw support from firming RBA rate hike expectations and a weaker USD.
- Hawkish Fed bets limit deeper USD losses, capping spot prices ahead of the key US inflation data.
- The bullish technical setup suggests that the path of least resistance for the pair is to the upside.
The AUD/USD pair holds steady above the 0.7200 mark through the Asian session on Tuesday, consolidating its recent strong move up to its highest level since May 14 touched the previous day. Meanwhile, the fundamental backdrop and the technical setup favor bullish traders, suggesting that the path of least resistance for spot prices remains to the upside.
Expectations for another interest rate hike by the Reserve Bank of Australia (RBA) later this month continue to underpin the Australian Dollar (AUD). The US Dollar (USD), on the other hand, attracts some follow-through selling amid a broadly rallying Japanese Yen (JPY) and turns out to be another factor acting as a tailwind for the AUD/USD pair. Traders, however, refrain from placing fresh directional bets and keenly await this week's release of the latest US inflation figures.
From a technical perspective, the recent close above the 0.7200 mark comes on top of a strong rally from the very important 200-day Simple Moving Average (SMA), tested in June, and validates the near-term constructive outlook. Furthermore, momentum indicators stay supportive, with the Relative Strength Index (RSI) hovering in bullish territory just shy of overbought and the Moving Average Convergence Divergence (MACD) line retaining a small positive spread.
This, in turn, hints that the upside pressure is firm but increasingly mature. Hence, any corrective pullback towards the 0.7145 immediate support is more likely to be bought into and remain limited. A convincing break below, however, might prompt some technical selling and drag the AUD/USD pair below the 0.7100 mark. However, the 200-day SMA around 0.6992 stands out as the key medium-term reference support. As long as spot prices hold above this longer-term gauge, the broader bias remains skewed to further gains even if near-term consolidation or corrective swings emerge.
On the top side, the multi-year peak, at 0.7272, is the next notable resistance, and a daily close above this hurdle would open the way for further gains.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
AUD/USD daily chart
US Dollar Price This week
The table below shows the percentage change of US Dollar (USD) against listed major currencies this week. US Dollar was the strongest against the New Zealand Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.10% | -0.15% | -1.60% | -0.28% | -0.25% | 0.31% | -0.01% | |
| EUR | 0.10% | -0.05% | -1.48% | -0.17% | -0.13% | 0.40% | 0.09% | |
| GBP | 0.15% | 0.05% | -1.54% | -0.12% | -0.08% | 0.45% | 0.15% | |
| JPY | 1.60% | 1.48% | 1.54% | 1.41% | 1.43% | 1.96% | 1.65% | |
| CAD | 0.28% | 0.17% | 0.12% | -1.41% | 0.08% | 0.57% | 0.27% | |
| AUD | 0.25% | 0.13% | 0.08% | -1.43% | -0.08% | 0.53% | 0.24% | |
| NZD | -0.31% | -0.40% | -0.45% | -1.96% | -0.57% | -0.53% | -0.31% | |
| CHF | 0.01% | -0.09% | -0.15% | -1.65% | -0.27% | -0.24% | 0.31% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
