Certainly. Here is a rewritten and expanded article based on the given source from ActionForex, along with additional analysis sourced from reputable forex commentary providers such as DailyFX and ForexLive. Credit to ActionForex for the original analysis.
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**AUD/USD Weekly Analysis and Broader Outlook**
*By ActionForex, Expanded and Adapted by [Your Name]*
**Overview**
In the past week, AUD/USD experienced notable volatility, driven largely by economic data from both Australia and the United States, shifts in global risk appetite, and ongoing speculation about monetary policy from both the Reserve Bank of Australia (RBA) and the Federal Reserve. The pair struggled to maintain upward momentum, closing the week below key resistance levels as traders weigh mixed signals for the future trajectory.
**Recent Performance**
– The AUD/USD currency pair opened the week close to the 0.6700 handle and demonstrated an initial rebound.
– The upward move lost steam after failing to secure a firm break above the 0.6704/0.6713 resistance zone.
– Despite a temporary rally in the middle of the week, the pair retraced as the US dollar benefited from stronger-than-expected economic data.
– By Friday’s close, AUD/USD retreated below 0.6600, finding support but remaining heavy as traders awaited further cues.
**Factors Influencing the Pair**
1. **Economic Data Releases**
– **Australia**: Australian economic prints were a mixed bag. Retail sales figures provided some optimism, showing modest growth. However, inflation data fell short of forecasts, reducing pressure on the RBA to hike rates in the near term.
– **United States**: Key US data included robust non-farm payrolls and better-than-expected services PMI. These reinforced the narrative of a resilient US economy, supporting the dollar.
– **China’s Influence**: As China is Australia’s largest trading partner, developments in the Chinese economy also shaped sentiment towards the Australian dollar. Mixed signals from Chinese industrial activity and consumer demand contributed to AUD/USD’s choppiness.
2. **Central Bank Policy Expectations**
– **Federal Reserve**: Although US inflation has moderated, Federal Reserve officials maintained a cautious stance on rate cuts. Persistent comments that monetary easing is not imminent have lent strength to the US dollar.
– **RBA**: The Reserve Bank of Australia kept rates steady and adopted a neutral bias, highlighting uncertainty about future economic conditions. The lack of hawkish guidance put a cap on upward moves in AUD/USD.
3. **Global Risk Sentiment**
– The Australian dollar, often regarded as a risk-sensitive asset, is susceptible to shifts in global risk appetite. This week, a mixed performance in equities and ongoing geopolitical tensions led to uneven demand for the currency.
4. **Technical Factors**
– Failure to break above the 0.6700 level indicated the presence of significant selling pressure.
– Repeated tests of the 0.6570-0.
Read more on AUD/USD trading.