The Australian Dollar strengthened against the US Dollar on Friday, with the AUD/USD pair trading at 0.7083, marking a 0.34% increase. This move followed disappointing US Retail Sales data, which heightened speculation that the Federal Reserve may refrain from raising interest rates due to emerging signs of economic weakness in the United States [1].
From a technical perspective, the AUD/USD daily chart indicates a bullish outlook, though buyers have yet to decisively surpass the January 29 high of 0.7094. A break above this level could pave the way for further gains, with the next resistance at 0.7100 and a subsequent target at the June 1 peak of 0.7190. Should bullish momentum persist, the pair could advance toward 0.7200 [1].
On the downside, the 100-day Simple Moving Average (SMA) at 0.7058 serves as the first support level, followed by the 50-day SMA at 0.6991 and the 200-day SMA at 0.6937. The shift in momentum toward bullishness has been evident since mid-July, as reflected in the Relative Strength Index (RSI) [1].
The article also notes that the Australian Dollar is influenced by factors such as interest rates set by the Reserve Bank of Australia, commodity prices (notably iron ore), the health of the Chinese economy, and overall market sentiment. However, the immediate market reaction was driven by the US Retail Sales miss and its implications for Federal Reserve policy [1].
CONCLUSION
The AUD/USD pair advanced following weaker-than-expected US Retail Sales, which increased expectations that the Federal Reserve may pause rate hikes. Technical indicators suggest a bullish outlook, with key resistance levels in focus. The market's attention remains on US economic data and central bank policy signals.