**AUD/USD Weekly Review and Technical Outlook**
*Based on content by ActionForex.com, expanded with additional analysis*
—
### Overview
During the past week, AUD/USD maintained a generally negative tone, with downward pressure persisting as the pair continued to find selling at higher resistance levels. Following a brief period of consolidation, sellers regained control, leading to further declines toward significant support levels. The broader context included a strong US dollar, fluctuating risk sentiment, and shifting expectations regarding central bank policies. These factors all played a vital role in influencing the pair’s direction.
This article provides a comprehensive review of the AUD/USD pair’s recent price action, explores technical analysis from multiple perspectives, summarizes key fundamental drivers, and presents possible scenarios for the coming week. Content is primarily based on the analysis provided by ActionForex.com with additional information to offer a deeper understanding of the pair’s dynamics.
—
### Weekly Price Action Highlights
– The AUD/USD pair began the week under pressure, failing to build above local resistance levels.
– Multiple attempts to recover were checked by sellers, especially near the 0.6700–0.6720 region.
– As the week progressed, the pair slipped further, testing key support zones and closing near weekly lows.
#### Recent Highs and Lows
– The weekly high came in at approximately 0.6725, where bearish sentiment increased.
– The pair closed the week well off its highs, nearer to the 0.6600 level, underscoring ongoing downside risk.
– Key psychological levels, such as 0.6700 and 0.6600, played pivotal roles throughout the week.
—
### Broader Market Backdrop
The backdrop for the AUD/USD decline included heightened risk aversion, a resilient US dollar, and mixed data out of China and Australia. Pertinent factors influencing sentiment included:
#### US Dollar Dynamics
– The greenback remained robust as US economic data beat expectations, particularly on employment and inflation.
– Traders dialed back expectations for the Federal Reserve to start cutting rates soon, helping the dollar rally.
– The US Dollar Index (DXY) found strong buying on dips, reflecting the market’s view that the US economy remains strong compared to peers.
#### Australian Macro Developments
– Australian economic reports were a mixed bag, with softer-than-expected retail sales and subdued inflation readings.
– Rising concerns over China’s economic outlook, due to its close trade relationship with Australia, contributed to AUD weakness.
– The Reserve Bank of Australia (RBA) maintained a cautious tone, highlighting uncertainties in the economic outlook.
#### Risk Sentiment
– Investors showed renewed risk aversion on the back of US bond yield gains and geopolitical concerns.
– Stock market volatility and the correction in commodity prices also weighed on the AUD, given its status as a commodity-linked and risk-sensitive currency.
—
### Technical Analysis
#### Medium-Term Structure
– From a structural perspective, AUD/USD remains stuck within a broad range, unable to break decis
Read more on AUD/USD trading.