**AUD/USD Expected to Trade Higher in Range: A Comprehensive Analysis**
*Based on insights from FXStreet and additional market analysis.*
**Introduction**
The Australian dollar (AUD) has shown consistent movement against the US dollar (USD) in recent trading sessions. Notably, the currency pair is seen as likely to maintain a higher trading range, reflecting both domestic factors from Australia and wider shifts in global markets. According to Quek Ser Leang and Peter Chia from UOB Group, and as reported on FXStreet, the AUD/USD pair is set to trade within the 0.6440 to 0.6540 range in the near term. This projection is rooted in technical analysis and prevailing macroeconomic sentiments.
This article explores recent AUD/USD trends, factors driving currency movements, technical levels to watch, and outlook by integrating both the referenced FXStreet article and complementary information from market research, economic releases, and central bank commentary.
**Recent Performance of AUD/USD**
The AUD/USD currency pair has experienced moderate optimism. Here’s a summary of its recent behavior:
– The AUD has recouped some earlier losses against the USD, driven by a slightly weaker American dollar and improved risk sentiment.
– The pair found support as US Treasury bond yields eased, decreasing the appeal of the US dollar.
– Australian economic data has provided mixed signals, but the currency was buoyed by expectations that the Reserve Bank of Australia (RBA) might not be as dovish as previously thought.
– The Australian dollar has traditionally benefited from increased global risk appetite and stable commodity prices, particularly iron ore and coal, which are key Australian exports.
**Technical Analysis: Key Support and Resistance Levels**
According to Quek Ser Leang and Peter Chia of UOB Group, the technical framework for AUD/USD is as follows:
– **Intraday and Near-Term Bias**: There is a tendency for the pair to edge higher, with any corrections likely to be short-lived.
– **Immediate Resistance Level**: 0.6540 is identified as the key upside barrier. If the pair can clear this, more buyers may be attracted, possibly resulting in a move beyond 0.6550.
– **Immediate Support Level**: 0.6440 is a strong support, particularly in the short term. A break below this level could shift the technical bias back to a negative outlook.
Technical charts show momentum indicators in neutral-to-bullish territory, suggesting consolidation with a slight positive tilt. The overall trading band is expected to remain within the 0.6440 – 0.6540 corridor unless a significant macroeconomic catalyst emerges.
**Contributing Factors to the AUD/USD Outlook**
Several factors play a critical role in shaping the AUD/USD trajectory:
*1. US Dollar Dynamics*
– The US dollar has recently weakened, largely due to softer-than-expected US economic data and dovish commentary from Federal Reserve officials.
– US inflation, employment, and retail sales data have set the tone for the USD
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