**AUD/USD Weekly Analysis and Technical Outlook**
*Adapted and elaborated from ActionForex’s original report*
*(Credit: ActionForex, https://www.actionforex.com/technical-outlook/audusd-outlook/604974-aud-usd-weekly-report-119/)*
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## Overview
The AUD/USD pair has come under increased scrutiny amid recent global market volatility, shifting risk sentiment, and key developments in both the Australian and US economies. The currency pair’s movement is being shaped by a confluence of regional factors, such as Australian economic indicators, commodity price trends, and Reserve Bank of Australia (RBA) policy updates, as well as global trends driven by US Federal Reserve actions and broader market sentiments. This comprehensive report will break down the AUD/USD outlook, incorporating technical signals, fundamental drivers, and broader market context for traders and investors.
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## Recent Developments
### Key Highlights This Week
– **Weekly Price Action:** AUD/USD spent much of the week consolidating within a defined range. Though there were brief attempts to push higher, the currency pair ultimately failed to hold gains above the notable resistance levels.
– **US Dollar Influence:** The pair’s performance was heavily impacted by ongoing US dollar strength, which resulted from elevated US Treasury yields and persistent expectations of a hawkish Federal Reserve.
– **Australian Economic Data:** Australian employment data surprised to the downside, while inflation pressures remain a threat to RBA’s monetary outlook.
– **Risk Sentiment Swings:** Broader risk-off sentiment, particularly in global equities and commodities, has also added pressure on the Australian dollar as a risk-proxy.
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## Technical Analysis
### Weekly Chart Structure
– **Trend Observation:** AUD/USD continues to trade within a larger consolidation pattern, failing to establish a clear trend in either direction over the past several weeks.
– **Resistance and Support:**
– Resistance is currently clustered around 0.6700-0.6750.
– The nearest meaningful support lies at 0.6570-0.6550, with stronger demand expected below 0.6500.
### Moving Averages and Indicators
– **Moving Averages:**
– The 20-week moving average has flattened, providing little directional bias.
– The 50-week moving average currently acts as dynamic resistance, located just above the current price.
– **Relative Strength Index (RSI):**
– The weekly RSI remains in neutral territory, suggesting neither overbought nor oversold conditions.
– **Momentum Oscillators:**
– Momentum indicators show declining bullish enthusiasm, failing to provide strong reversal signals.
### Key Technical Levels
– **Upside Levels:**
– First resistance: 0.6700-0.6750 zone; a daily close above may open up further gains towards 0.6800 and even 0.6900.
– Psychological barrier: 0.7000 looms as a long-term pivot point
Read more on AUD/USD trading.