**AUD/USD Returns to Bullish Momentum: In-depth Analysis and Future Prospects**
Published by Economies.com, Adapted and Expanded for In-depth Insight
The AUD/USD currency pair has seen significant movement in recent trading sessions, capturing the attention of forex traders and analysts worldwide. The original article from Economies.com reported that the pair returned to an upward trajectory, signaling renewed bullish sentiment. In this expanded analysis, we will explore the technical and fundamental indicators, recent economic developments impacting the Australian dollar and US dollar, and offer a detailed outlook for traders looking forward. All credit for the initial analysis is given to Economies.com.
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### Background: AUD/USD and Its Significance
The AUD/USD pair measures the value of the Australian dollar against the United States dollar. It is among the most traded pairs in the forex market due to the considerable economic interdependence between Australia and the United States. The pair is often influenced by:
– Commodity prices, as Australia is a major exporter of minerals and agricultural products.
– Changes in interest rates and monetary policy set by the Reserve Bank of Australia (RBA) and the US Federal Reserve (Fed).
– Broader risk sentiment, with the Australian dollar often seen as a “risk-on” currency.
– Key economic indicators such as employment reports, GDP numbers, trade balances, and inflation data.
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### Recent Technical Performance
As originally noted on Economies.com, AUD/USD has shown resilience, bouncing back after a recent pullback. Technical analysis reveals the following:
– The currency pair rebounded from the 0.6630 support level, maintaining a position above the 50-day Exponential Moving Average (EMA).
– The 50 EMA has served as a dynamic support in recent sessions, reinforcing bullish technical sentiment.
– Recent daily candlesticks closed above previous highs, confirming the renewed upside momentum.
– Relative Strength Index (RSI) values remain in neutral-to-bullish territory, suggesting room for further gains without entering overbought conditions.
**Key Technical Levels:**
– **Immediate Support**: 0.6630
– **Nearest Resistance**: 0.6735
– **Secondary Resistance**: 0.6800
– **50-day EMA**: Currently acting as support around 0.6650
– **Downside Risk**: A drop below 0.6630 could trigger fresh selling, potentially targeting 0.6550
**Technical Outlook:**
– The upward trend is anticipated to continue as long as the 0.6630 support holds.
– A sustained move above 0.6735 would confirm bullish control and open the way toward 0.6800 and beyond.
– Failure to hold key support may indicate a reversal and increased bearish pressure.
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### Fundamental Drivers
The movement of the AUD/USD pair is not dictated by technicals alone. A blend of macroeconomic developments and monetary policy shifts from both Australia and the US play an important role.
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