The AUD/USD currency pair is often influenced by a variety of economic data releases. These data points can provide crucial insights into the health of the economies of both Australia and the United States, leading to fluctuations in the exchange rate between the two currencies.
One of the key factors that can impact the near-term trends of AUD/USD is the release of private sector PMIs from China, as well as Australian GDP numbers. These indicators can offer a glimpse into the overall health of the respective economies, affecting investor sentiment towards the Australian dollar.
US Economic Calendar
Additionally, data releases from the US economic calendar can have a significant impact on the AUD/USD exchange rate. Hotter-than-expected data from the US could potentially lead to a strengthening of the US dollar and a decline in investor bets on a rate cut by the Federal Reserve, tilting monetary divergence towards the greenback.
From a technical perspective, the AUD/USD pair has been exhibiting bullish price signals, with the currency pair comfortably sitting above both the 50-day and 200-day Exponential Moving Averages (EMAs). A breakout above the $0.66500 handle could signal a move towards the $0.67003 resistance level, while a breach of this level could lead to further upside towards the $0.67500 handle.
Conversely, a drop below the $0.66 handle could give bears an opportunity to test the 50-day and 200-day EMAs, as well as the $0.65760 support level. Buyers may step in at this level, as it coincides with the 200-day EMA, providing a potential area of support for the currency pair.
With a 14-period Relative Strength Index (RSI) reading of 56.25, the AUD/USD pair may have room to move towards the $0.67500 handle before entering overbought territory. This indicator can provide insights into the momentum of the currency pair and potential reversal points.
Various economic data releases, technical signals, and key support and resistance levels can impact the trends of the AUD/USD currency pair. Traders and investors should carefully monitor these factors to make informed decisions regarding their positions in the market.
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