The Australian Dollar (AUD) is set to finish the week on a strong note against the US Dollar (USD), rising by 0.21% as improved risk appetite drives the AUD/USD pair to trade near 0.7124, closing close to Friday's highs [1]. The pair broke above the June 15 high of 0.7088, which has now become a support level, and reached a two-day high of 0.7136 before settling around 0.7120 [1]. Technical indicators suggest a shift in momentum, with the Relative Strength Index (RSI) turning from bearish to bullish, indicating that buyers anticipate further upside. This optimism is supported by expectations that the Reserve Bank of Australia (RBA) will raise interest rates at its September 29 meeting [1].
If the AUD/USD continues to climb above the current week's high of 0.7168, analysts forecast a move toward 0.7200. Further strength could see the pair targeting the September 9 daily high of 0.7237 and the May 6 cycle high of 0.7277 [1]. Conversely, a decline below the 50-day Simple Moving Average (SMA) at 0.7084 could lead to a test of the 100-day SMA at 0.7078, the September 16 swing low of 0.7075, and eventually the 200-day SMA at 0.7012 [1].
Market sentiment remains positive for the AUD, driven by expectations of higher interest rates and improved risk appetite. The article notes that the RBA's monetary policy decisions, particularly interest rate hikes, are a significant driver for the Australian Dollar. Additionally, factors such as the health of the Chinese economy, inflation, and trade balance play crucial roles in influencing AUD's value [1].
No specific analyst opinions or forward-looking statements beyond the technical outlook and rate hike expectations are provided in the article [1].
CONCLUSION
The AUD/USD pair has broken key resistance levels and is poised for further gains, supported by expectations of an RBA rate hike and positive market sentiment. Technical indicators suggest bullish momentum, with targets set at 0.7200 and beyond if current highs are surpassed. The market takeaway is a medium-impact move, with traders closely watching upcoming RBA decisions and technical levels.