**AUD/USD Price Outlook: Renewed Quest for 0.6600**
*Based on analysis by Christian Borjon Valencia, FXStreet, with additional insights.*
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The AUD/USD currency pair, often called the “Aussie,” remains a focal point for forex traders as market participants scrutinize the next major move. Recent developments both in macroeconomic data and technical chart patterns suggest that the drive toward the 0.6600 level has regained momentum. In this comprehensive update, we’ll examine the key factors contributing to this move, integrating insights from the original FXStreet analysis and complementary findings from other reputable sources.
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## Current Market Landscape
### Dollar Under Pressure Amid Soft US Data
– U.S. macroeconomic indicators released this week have shown signs of softening.
– June inflation data came in below expectations, with the Consumer Price Index (CPI) rising at a slower pace year-over-year.
– Labor market data, including jobless claims and non-farm payrolls, suggest that the U.S. economy is experiencing a gradual cooling.
– The Federal Reserve has adopted a more cautious tone. FOMC minutes indicate policymakers are attentive to both slowing inflation and employment.
– As a result, the U.S. dollar index (DXY) has declined toward the 104.0 region, creating supportive conditions for risk-sensitive currencies like the Australian dollar.
### Australian Economic Overview
– Australia’s June labor market numbers outperformed expectations, with the unemployment rate holding steady and full-time positions rising.
– The Reserve Bank of Australia (RBA) left rates unchanged at its last policy meeting, but language in the statement hinted at ongoing concern about sticky service inflation.
– RBA Governor Bullock has emphasized data dependency, keeping markets speculating on the timing and direction of the next rate move.
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## Technical Analysis: AUD/USD Closes On 0.6600
Christian Borjon Valencia’s FXStreet analysis underscores a renewed attempt by the AUD/USD to breach the 0.6600 resistance. Here’s an updated technical breakdown:
### Chart Patterns and Price Structure
– The currency pair recently found strong buying interest near the 0.6670 support, bouncing decisively in subsequent sessions.
– A series of higher lows since mid-June forms a constructive base for further gains.
– The 50-day and 200-day simple moving averages (SMAs) are converging, hinting at a potential bullish crossover in the days ahead.
– Relative Strength Index (RSI) readings hover in the mid-50s, reflecting balanced but positive momentum.
– MACD histogram bars are firmly above the zero line, reinforcing the bullish bias.
### Key Levels To Watch
– **Immediate resistance:** 0.6600 — psychological and technical barrier, tested repeatedly since May.
– **Next resistance:** 0.6625 — former swing high from late June.
– **Major resistance:** 0.6660 — multi-month high, coinciding with a previous breakdown
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