**AUD/USD Price Outlook: Eyeing 0.6600 Resistance as Uptrend Stirs**
*Based on the analysis by Pablo Piovano, FXStreet; additional research included.*
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**Overview of AUD/USD Current Trends**
The AUD/USD currency pair has been showing renewed signs of strength, flirting with multi-week highs and pushing toward significant resistance levels. Recent trading sessions have been characterized by increased bullish momentum, as market participants respond to changing dynamics in both the Australian and US economies.
As spot prices approach the psychologically crucial 0.6600 handle, traders and investors are focusing on upcoming economic data, central bank policy views, and global risk sentiment to determine whether the Aussie can break higher or faces a pullback.
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**Recent Performance and Technical Highlights**
– AUD/USD recently rebounded, climbing above the 0.6540 level which served as a key resistance in the previous weeks
– The pair has posted consistent gains, indicating robust buying interest that aligns with improved risk appetite in global markets
– Technical indicators such as moving averages and oscillators are beginning to signal a potential continuation of the uptrend
**Key Price Points in Focus**
– Immediate support is seen near 0.6540, the prior resistance now acting as a foundation for further upside attempts
– Next resistance lies at 0.6600, a multi-week high and an area that previously triggered corrective pullbacks
– Beyond 0.6600, further resistance can be found at 0.6660 and the 2024 high near 0.6700
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**Drivers Behind AUD/USD’s Price Action**
**1. Australian Economic Developments**
Australia’s economic landscape has played a pivotal role in shaping the recent trajectory of the Australian dollar. Key influences include:
– An improving labor market, with lower unemployment rates supporting household consumption
– A pickup in retail sales and services sector activity
– Resilient commodity exports, particularly in iron ore, which continue to generate robust trade surpluses
– Steadiness in inflation prints, which the Reserve Bank of Australia (RBA) keeps monitoring carefully
**2. Reserve Bank of Australia (RBA) Policy**
– The RBA has adopted a data-dependent approach, signaling readiness to adjust rates if inflation re-accelerates
– Recent statements have emphasized caution, but have not ruled out further tightening should economic conditions warrant it
– The market’s expectations for the RBA’s future actions are a key anchoring point for the AUD/USD price
**3. External Influences: US Economic Data and Federal Reserve Policy**
– The US Federal Reserve’s rate outlook remains unclear amid mixed signals from inflation and employment data
– Any dovish tilt from the Fed, particularly if rate cuts begin to look more likely, tends to weaken the US dollar and favor risk-sensitive currencies like the Aussie
– Conversely, signs of persistent strength in the US economy extend support for the dollar, capping AUD/USD advances
**4. Global Risk Sent
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