AUD/USD Extends Rally into Ninth Consecutive Week, Targets 2022 High
AUD/USD remains well supported near its highest level in three and a half months on Friday, putting the pair on course for a ninth consecutive weekly gain and a second straight monthly advance.
The Australian dollar continues to draw support from the Reserve Bank of Australia’s hawkish stance, with policymakers signaling their readiness to tighten policy further if needed. Rising inflation in July has reinforced expectations that the RBA could raise interest rates as early as September, providing an additional tailwind for the currency.
The technical outlook on the daily chart remains firmly bullish. The latest leg higher has cleared the 0.7205 target, corresponding to the Fibonacci expansion of the extended third wave in the five-wave advance from 0.6865. However, increasingly overbought conditions may slow the pace of gains in the near term.
A period of consolidation or a modest pullback could emerge before another attempt higher, with key resistance levels located at 0.7277 and 0.7283, representing the peaks from June 6, 2026 and June 3, 2022, respectively.
Market participants are now focused on Federal Reserve Chair Warsh’s speech at the Jackson Hole symposium later today for fresh clues on the Fed’s policy outlook. Any signals regarding the future path of U.S. monetary policy are likely to influence the dollar and shape near-term direction in AUD/USD.
Res: 0.7222; 0.7277; 0.7283; 0.7300
Sup: 0.7180; 0.7150; 0.7120; 0.7100
