AUDUSD Technical Analysis – The AUD outperforms on a series of positive news

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Fundamental
Overview

The US Dollar this week has
been erasing some of the losses experienced last week after the benign US PPI
and the Trump’s reciprocal tariffs announcement. There hasn’t been any notable
catalyst this week to support the greenback although some analysts pointed to
less dovish comments from Fed’s Waller on Tuesday which would explain the rise
in Treasury yields afterwards.

On the AUD side, the RBA cut
interest rates by 25 bps as expected bringing the Cash Rate to 4.10% but it
was accompanied by a more hawkish than expected guidance. Today, we got the Australian
Employment report and once again the data showed a solid labour market.
Moreover, the AUD got a boost as Trump talked about the possibility of a new
trade deal with China.

AUDUSD
Technical Analysis – Daily Timeframe

AUDUSD Daily

On the daily chart, we can
see that AUDUSD bounced on the key support zone around the 0.6330 level as the buyers
piled in following a series of positive news for the Australian Dollar. The
sellers will need the price to fall below the support zone to regain conviction
and start targeting the lows around the 0.61 handle.

AUDUSD Technical
Analysis – 4 hour Timeframe

AUDUSD 4 hour

On the 4 hour chart, we can
see that we have an upward trendline defining the bullish momentum. We
can expect the buyers to continue to lean on it to keep pushing into new highs,
while the sellers will look for a break below the trendline and the support to
increase the bearish bets into new lows.

AUDUSD Technical
Analysis – 1 hour Timeframe

AUDUSD 1 hour

On the 1 hour chart, we can
see that we’ve been having a rangebound price action this week as the US Dollar
regained some ground. The price is now close to the upper bound of the average daily range for today, so from a risk
management perspective, the buyers would be better off waiting for another
pullback into the trendline/support before positioning into new highs.