**AUD/USD Weekly Analysis: Technical Overview and Broader Market Influences**
*Based on the analysis originally published by ActionForex.com’s technical team.*
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**Overview**
The Australian Dollar (AUD) trading against the US Dollar (USD) is a pair that reflects both countries’ economic performances and geopolitical climates. This week’s outlook explores the latest technical formations for AUD/USD, integrates broader market context, and evaluates possible scenarios that may unfold in the upcoming trading sessions. We also draw on additional market perspectives from sources such as DailyFX and Investing.com to provide a comprehensive, updated picture for traders and investors.
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### Weekly Technical Review of AUD/USD
#### Recent Performance
– The AUD/USD pair started the week under notable bearish pressure, dipping further below the 0.6650 area.
– The pair touched significant support before stabilizing and forming a short-term base.
– Attempts to rebound faced resistance near the 0.6700 handle, with the currency pair consolidating in a narrow range to close out the week.
#### Key Technical Indicators
– **Moving Averages:** The weekly chart shows the price fluctuating close to its 55-week Exponential Moving Average (EMA), suggesting a struggle between bulls and bears for directional control.
– **RSI (Relative Strength Index):** Stays around the midpoint, indicating neither overbought nor oversold conditions and the possibility of a consolidation phase.
– **Support and Resistance Levels:**
– Immediate support appears near the 0.6590 region, a strong level that has previously halted declines.
– The first resistance is observed at 0.6710, with a further barrier at 0.6800, should the bulls regain momentum.
– In case of a breakdown below 0.6590, the next support lies at 0.6520.
– **Chart Patterns:** Signs of a nascent ascending trendline from the year’s lows indicate the potential for higher lows if current support holds.
#### Price Action Analysis
– After failing to decisively breach higher resistance, the pair appears to be forming a consolidative pattern.
– Price spikes are being met with selling pressure above 0.6700, while dips towards 0.6590 are attracting buyers.
– Should the pair remain above its 55-week EMA, there may be room for further upside movements in the medium term.
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### Broader Market and Fundamental Context
#### Australian Economic Factors
– **Reserve Bank of Australia (RBA) Policy:** The RBA has recently held interest rates steady, citing persistent inflation concerns despite some moderation in economic data.
– **Economic Data:** While Australia’s GDP growth has moderated, strong labor market figures and resilient commodity prices (especially for iron ore and coal) have underpinned the AUD.
– **External Risks:**
– Trade relations with China continue to weigh on market sentiment, with any positive developments supporting AUD demand.
– Domestic data such as employment figures or retail sales may trigger
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