FundamentalOverview

The US Dollar this week hasbeen erasing some of the losses experienced last week after the benign US PPIand the Trump’s reciprocal tariffs announcement. There hasn’t been any notablecatalyst this week to support the greenback although some analysts pointed toless dovish comments from Fed’s Waller on Tuesday which would explain the risein Treasury yields afterwards.

On the AUD side, the RBA cutinterest rates by 25 bps as expected bringing the Cash Rate to 4.10% but itwas accompanied by a more hawkish than expected guidance. Today, we got the AustralianEmployment report and once again the data showed a solid labour market.Moreover, the AUD got a boost as Trump talked about the possibility of a newtrade deal with China.

AUDUSDTechnical Analysis – Daily Timeframe

On the daily chart, we cansee that AUDUSD bounced on the key support zone around the 0.6330 level as the buyerspiled in following a series of positive news for the Australian Dollar. Thesellers will need the price to fall below the support zone to regain convictionand start targeting the lows around the 0.61 handle.

AUDUSD TechnicalAnalysis – 4 hour Timeframe

On the 4 hour chart, we cansee that we have an upward trendline defining the bullish momentum. Wecan expect the buyers to continue to lean on it to keep pushing into new highs,while the sellers will look for a break below the trendline and the support toincrease the bearish bets into new lows.

AUDUSD TechnicalAnalysis – 1 hour Timeframe

On the 1 hour chart, we cansee that we’ve been having a rangebound price action this week as the US Dollarregained some ground. The price is now close to the upper bound of the average daily range for today, so from a riskmanagement perspective, the buyers would be better off waiting for anotherpullback into the trendline/support before positioning into new highs.

Upcoming Catalysts

Today we get the latest US Jobless Claimsfigures, while tomorrow we conclude the week with the US Flash PMIs.