**AUD/USD Weekly Analysis: Technical Outlook and Broader Market Context**
*Original author: ActionForex.com*
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## Overview
The AUD/USD currency pair continues to navigate a dynamic environment influenced by both technical factors and the evolving narrative of global monetary policy. Over the past week, the pair has exhibited notable volatility. Traders and investors closely watched as key resistance and support levels were tested, prompting reassessments of both short-term and longer-term trends.
This article provides a comprehensive review of the AUD/USD pair’s recent performance, explores technical signals, and broadens the analysis with context from macroeconomic events and market sentiment. Insights are drawn from ActionForex.com along with supplementary data from sources such as Investing.com and DailyFX.
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## Weekly Price Movement and Market Drivers
Over the last week, AUD/USD:
– Maintained resilience above the 0.6600 support mark, with buyers returning at lower levels.
– Encountered resistance near the 0.6700 threshold, highlighting continued overhead supply.
– Reacted to shifting Federal Reserve (Fed) and Reserve Bank of Australia (RBA) communication regarding interest rates.
– Traded in a context where US economic data and China’s economic prospects both exert significant influence on the Australian dollar.
### Influential Fundamental Factors
Several drivers shaped AUD/USD price action:
**1. US Dollar Dynamics**
– The US dollar index fluctuated as traders weighed Fed rate-cut prospects. Softer US inflation data and dovish commentary prompted dollar weakness, supporting AUD/USD upside moves.
**2. Australian Economic Data**
– Australian labor market and inflation figures remained pivotal. Employment data signaled some slack but remained robust enough to keep RBA cautious about rapid policy easing.
– The latest RBA meeting minutes highlighted a central bank prepared for conditional flexibility depending on inflation outcomes.
**3. Commodities and China**
– As a currency closely tied to commodity exports, the Australian dollar tracked iron ore and copper prices.
– Improved sentiment around China, Australia’s largest trading partner, lent periodic support to the Aussie dollar, particularly on days when Chinese data pointed to economic stabilization.
**4. Risk Sentiment**
– Shifts in broader risk appetite influenced AUD/USD. The Australian dollar, often seen as a proxy for global risk, strengthened on days of rising stock markets and improved investor sentiment.
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## Technical Analysis: Key Levels and Indicators
### Support and Resistance
– **Immediate Support:** 0.6586 (recent swing low)
– **Key Resistance:** 0.6713 (May swing high)
– **Secondary Resistance:** 0.6750 area (psychological level and historical pivot)
– **Deeper Support:** 0.6520, aligning with May lows
### Recent Price Structure
The pair has been oscillating within a rising channel formed from the late-April lows:
– Bulls remain in control on higher time frames as long as the 0.6586 level holds.
– Tops near 0.6700-0.6713
Read more on AUD/USD trading.