**AUD/USD Weekly Technical Analysis and Outlook**
_Based on the original article by ActionForex.com, expanded with additional insights and sources_
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## Overview of AUD/USD Movements
The Australian Dollar (AUD) continues to trade within a well-defined range against the US Dollar (USD), as market participants gauge the direction of the US Federal Reserve’s monetary policy and react to economic trends out of Australia and China. In the past week, the AUD/USD currency pair experienced fluctuations but ended largely unchanged, indicating ongoing market indecision.
### Key Events Influencing AUD/USD
Several fundamental and technical factors are currently shaping the AUD/USD outlook:
– **US Federal Reserve Policy**: Despite calls for monetary easing, the Fed has maintained a cautious tone, holding rates steady. Jerome Powell and other members have pointed to persistent inflationary pressures, reducing the odds of near-term rate cuts.
– **Australian Economic Data**: The Reserve Bank of Australia (RBA) has held rates, emphasizing a data-dependent stance. Jobs and inflation figures are under scrutiny for further signals. Recent Australian employment numbers have shown resilience, and monthly CPI figures remain slightly above the RBA’s target.
– **China’s Economic Performance**: China remains Australia’s largest trading partner. Marginal weakness in Chinese growth or real estate activity often impacts the AUD due to Australia’s significant commodity exports to China.
– **Global Risk Sentiment**: The Australian Dollar is a pro-cyclical currency. When global markets are optimistic and commodities rise, the AUD tends to strengthen. Conversely, risk-off environments favor the US Dollar’s status as a safe haven.
## Technical Analysis
### Short-Term Chart Patterns
According to ActionForex, the AUD/USD pair has been trading within a corrective pattern since early June, oscillating between key support and resistance levels.
#### Daily Time Frame Highlights
– The AUD continues to find support near 0.6580-0.6600, with resistance near 0.6700-0.6720.
– Short-term moving averages are flattening, indicating market indecision.
– Relative Strength Index (RSI) remains close to the midline, reflecting the absence of a dominant trend.
– Bollinger Bands have tightened, suggesting reduced volatility but potential for a breakout.
#### Weekly Outlook
– The pair struggled to decisively break above its 55-week Exponential Moving Average.
– Price action remains capped by a descending trendline from last year’s highs.
– Despite several attempts to rally, sellers returned near the 0.6700 handle, reinforcing resistance.
– The formation of successive lower highs since early 2024 suggests bearish momentum is present, albeit weak.
### Key Support and Resistance Levels
– **Immediate Resistance**: 0.6700-0.6720, followed by the longer-term barrier at 0.6760.
– **Key Support**: 0.6580-0.6600 region, with additional demand expected near 0.6520 and
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