FX.co ★ AUD/USD

RBA Hawkish Stance and China Trade Drivers Propel Aussie Above 0.7000 The AUD/USD currency pair is trading steadily around 0.7027, consolidating recent gains amidst a supportive domestic economic landscape and shifting global sentiment. The Reserve Bank of Australia (RBA) has maintained a firm, hawkish policy bias as Governor Michele Bullock emphasized that domestic inflation, while easing toward 3.8%, remains elevated and above the central bank's target band. Australia’s latest economic data provided a significant boost, highlighted by a strong trade balance surplus driven by a sharp 9.6% rebound in monthly exports and resilient demand from key trading partner China. Meanwhile, the U.S. Dollar Index (DXY) remains muted near 99.75 as the U.S. Federal Reserve balances cooling labor market momentum against steady disinflation, encouraging market participants to price in monetary easing cycles. While Middle Eastern geopolitical developments continue to keep commodity markets volatile, firm iron ore demand and positive Asian trade dynamics have provided a strong foundation for the Australian Dollar. Daily Technical Momentum and Key Structural Horizons On the daily chart, AUD/USD maintains a well-defined bullish structure, trading comfortably above its 9-day and 50-day Exponential Moving Averages (EMAs) anchored near 0.6990 and 0.6930, respectively. Daily Heiken Ashi candles reflect sustained upward momentum following a brief consolidation phase around the 0.7000 psychological milestone. Momentum indicators support this constructive view, with the Commodity Channel Index (CCI) holding in positive territory near +65, indicating moderate bullish strength without entering overextended overbought conditions. Key immediate support is established at the 0.6970–0.7000 demand band, where strong institutional buying interest has repeatedly emerged. On the upside, initial overhead resistance is located at 0.7060, with a decisive daily breakout above this barrier opening the path toward multi-year high targets around 0.7120 and 0.7180.

Building on this short-term technical structure, the primary execution strategy favors a bullish continuation while price remains anchored above the 0.6970 pivot. Tactical traders can look to position long on minor pullbacks into the 0.7000–0.7015 retest area, seeking an entry that maximizes risk-to-reward metrics. A protective stop-loss should be positioned below 0.6960 to guard against a broader structural shift, while setting an initial take-profit objective near 0.7060 and an extended target near 0.7100. Conversely, a sustained breakdown beneath 0.6960 would invalidate the immediate bullish thesis, forcing a deeper corrective retracement toward the 0.6900–0.6920 secondary demand area where short-side scalpers could target downside extension. Strategic Forex Trading Plan: To manage risk effectively across different timeframes, traders should align entries and exits with the following structured execution parameters: Short-Term Plan (Intraday / 1–3 Days): Long Trade: Entry zone at 0.7000–0.7015, Stop Loss (SL) at 0.6960, Take Profit 1 (TP1) at 0.7060, Take Profit 2 (TP2) at 0.7100. Short Trade: Entry on breakdown at 0.6955, Stop Loss (SL) at 0.6995, Take Profit 1 (TP1) at 0.6910, Take Profit 2 (TP2) at 0.6870. Long-Term Plan (Multi-Week / Swing): Long Trade: Entry on pullback near 0.6930–0.6950, Stop Loss (SL) at 0.6860, Take Profit (TP) at 0.7180. Short Trade: Entry on rejection near 0.7120, Stop Loss (SL) at 0.7190, Take Profit (TP) at 0.6900.