Aussie Dollar Extends Gains Following Hawkish RBA Remarks

AUD/USD surged to a three-week high on Wednesday, gaining nearly 0.5% during Asian and early European trading after hawkish comments from an RBA official reinforced expectations that inflation risks remain elevated and strengthened the central bank’s tightening bias.

The latest advance pushed the pair above the psychological 0.7000 barrier and through the key Fibonacci resistance at 0.7025, the 38.2% retracement of the 0.7237-0.6894 decline. A sustained close above this level would confirm a bullish signal and support a potential trend reversal scenario. The move is further underpinned by the formation of a double-bottom pattern, with the rising weekly cloud helping to contain the broader downtrend.

However, bulls still face significant hurdles. Immediate resistance is seen at 0.7032, where the 100-day moving average stands, followed closely by the 200-day moving average at 0.7046. The two averages recently formed a bearish crossover, making a sustained break above both levels necessary to strengthen the recovery outlook.

Strong positive momentum on the daily chart continues to support the upside bias. Nevertheless, caution is warranted as overbought stochastic indicators may begin to weigh on the rally, which has now extended into a fourth consecutive session of gains.

In the near term, the outlook is expected to remain constructive while the pair holds above the 0.7000 level.

Res: 0.7032; 0.7046; 0.7065; 0.7075
Sup: 0.7000; 0.6990; 0.6975; 0.6947