AUD/USD Price Forecast: Sees more upside above three-year high of around 0.7150

AUD/USD wobbles around 0.7075 ahead of Fed policy minutes and the Australian employment data.
The US Dollar trades higher ahead of the FOMC Minutes release.
Economists expect the Australian economy to have created fewer jobs in January.

Sagar Dua FXStreet

The AUD/USD pair trades in a tight range around 0.7075 during the European trading session on Wednesday. The Aussie pair consolidates as investors await the release of Federal Open Market Committee (FOMC) minutes at 19:00 GMT and the Australian employment data for January on Thursday.

Ahead of the FOMC minutes release, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, is up 0.2% to near 97.30.

Investors will pay close attention to the Federal Reserve’s (Fed) January meeting minutes to get fresh cues on the monetary policy outlook.

Meanwhile, the Australian employment data is expected to show that the economy created 20K fresh jobs, lower than 65.2K in December. The Unemployment Rate is seen higher at 4.2% from the previous reading of 4.1%. Signs of cooling Australian labor demand would weigh on market expectations for more interest rate hikes by the Reserve Bank of Australia (RBA) in the near term.

In the policy meeting earlier this month, the RBA hiked its Official Cash Rate (OCR) by 25 basis points (bps) to 3.85%, and kept the room open for further monetary policy tightening.

AUD/USD technical analysis

In the daily chart, AUD/USD trades flat at around 0.7075 at the press time. The 20-day Exponential Moving Average (EMA) rises and trails price, underscoring an established uptrend. Spot holds above the average at 0.6999, keeping pullbacks contained and trend conditions intact.

The 14-day Relative Strength Index (RSI) prints 64 (bullish) after easing from prior overbought readings, confirming momentum still favors the topside.

Dips toward the rising 20-day EMA at 0.6999 would be supported, and sustained acceptance above it would keep the path of least resistance higher. The pair could advance the current uptrend towards 0.7200 if it breaks above the three-year high of around 0.7150.

On the contrary, a daily close below the average would dent bullish momentum, and the RSI could drift toward its midline, pointing to range development before the next directional push.

(The technical analysis of this story was written with the help of an AI tool.)

Economic Indicator

Employment Change s.a.

The Employment Change released by the Australian Bureau of Statistics is a measure of the change in the number of employed people in Australia. The statistic is adjusted to remove the influence of seasonal trends. Generally speaking, a rise in Employment Change has positive implications for consumer spending, stimulates economic growth, and is bullish for the Australian Dollar (AUD). A low reading, on the other hand, is seen as bearish.

EUR/USD climbs to daily highs near 1.1820

EUR/USD now picks up pace and advances to the area of daily peaks north of the 1.1800 barrier at the end of the week. The pair’s decent move higher comes against the backdrop of a generalised lack of direction in the FX galaxy and the mild offered stance in the US Dollar.

GBP/USD trims losses, retests 1.3460

After briefly challenging its key 200-day SMA near 1.3440, GBP/USD now manages to regain some balance and revisit the 1.3460 zone on Friday. Cable’s pullback comes as the selling pressure on the Greenback gathers traction, reigniting some recovery in the risk-linked space.

Gold flirts with four-week highs past $5,200

Gold extends its rebound, climbing for a third consecutive session and pushing back above the $5,200 mark per troy ounce on Friday. The move higher continues to draw support from lingering geopolitical tensions and the ongoing uncertainty surrounding US trade policy, both of which are keeping safe-haven demand firmly in play.

Bitcoin, Ethereum and Ripple consolidate with short-term cautious bullish bias

Bitcoin, Ethereum and Ripple are consolidating near key technical areas on Friday, showing mild signs of stabilization after recent volatility. BTC holds above $67,000 despite mild losses so far this week, while ETH hovers around $2,000 after a rejection near its upper consolidation boundary.

Changing the game: International implications of recent tariff developments

The Supreme Court ruling on International Emergency Economic Powers Act (IEEPA) tariffs provides limited relief for the rest of the world, with weighted average tariff rates modestly lower.

Starknet unveils strkBTC, shielded Bitcoin transactions on Ethereum Layer 2

Starknet, the Ethereum Layer 2 network developed by StarkWare, today announced strkBTC, a wrapped Bitcoin asset that introduces optional shielding while preserving full DeFi composability.