The Australian Dollar (AUD) rallies against the US Dollar (USD) as market focus shifts to potential Fed rate cuts. Fed Chair Powell reiterated the possibility of cuts this year, though emphasized dependence on inflation data.
US economic releases signal a slowing labor market, with rising jobless claims and a widening trade deficit. This further supports the view that the Fed may need to ease policy sooner.
Technical Outlook: AUD/USD’s recent surge has cleared key resistance levels. Buyers now target 0.6640 (Jan 5 low), with further upside potential towards 0.6650 and 0.6747 (Jan 5 high).
Key Levels to Watch:
Resistance: 0.6640, 0.6650, 0.6747
Support: 0.6600, 0.6560/65 (confluence of 100 and 200-day DMAs)
