AUD/USD climbs to new highs north of 0.6500 – Crypto News – Crypto News
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AUD/USD climbs to new highs north of 0.6500 AUD/USD climbs to new highs north of 0.6500

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AUD/USD climbs to new highs north of 0.6500 – Crypto News

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9 months ago

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  • AUD/USD adds to the weekly advance, surpassing the 0.6500 mark.
  • The US Dollar remains under pressure from economic data, US-China trade deal.
  • The US CPI fell below consensus, rising by 2.4% YoY in May.

The upward trend in the Aussie Dollar (AUD) continues unabated this week, with AUD/USD advancing for the third consecutive day and reaching new yearly peaks near the 0.6550 level.

AUD/USD propped up by USD selling, trade optimism

The pair keeps its weekly recovery well in place on Wednesday in response to further pessimism hurting the Greenback, while auspicious news on the trade front also alleviated concerns over a protracted trade war.

Indeed, the US Dollar accelerated its losses after US inflation figures showed the CPI rising less than initially estimated by 2.4% in the year to May. The core reading followed suit, coming in short of expectations and rising 2.8% from a year earlier.

The weaker-than-expected US data has prompted investors to accelerate their bets of a probable rate cut by the Federal Reserve at its September gathering.

Back to trade, US and China officials appear to have reached some common ground regarding rare earths at their gathering in London, although the agreement still needs confirmation from both President Trump and China’s Xi Jinping.

Next on tap in Oz

Given the lack of data releases in Australia on Wednesday, investors’ attention shifts to the Melbourne Institute’s release of Inflation Expectations on Thursday.

What about techs?

AUD/USD is trading in the low-0.6500s and is expected to face initial resistance at the YTD peak of 0.6545 (June 11), seconded by the November 2024 high of 0.6687 (November 7) and the 2024 top of 0.6942 (September 30), all preceding the key 0.7000 hurdle.

On the other hand, the resumption of the bearish trend could spark an initial drop to the critical 200-day SMA at 0.6434, prior to the May trough of 0.6356 (May 12). The latter appears reinforced by the proximity of the provisional contention at the 55-day and 100-day SMAs at 0.6379 and 0.6342, respectively.

The RSI near 59 suggests that further gains should remain in the pipeline in the short-term horizon, while the ADX past 26 is indicative of a modest strength of the trend.

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