The AUD/USD price forecast reveals a positive trajectory for the Australian Dollar, registering a modest increase to $0.65969, which reflects a 0.43% rise. The currency has been experiencing upward momentum, buoyed by a decrease in US Treasury yields and a weakening US Dollar.

This trend underscores the AUD/USD’s resilience and potential for further gains amidst varying economic indicators and central bank activities.

Federal Reserve’s Dovish Stance Boosts AUD

Federal Reserve Chair Jerome Powell’s recent remarks hinted at a potential rate cut, fostering a favourable environment for the AUD/USD.

The dovish statements, particularly from Atlanta Fed President Raphael Bostic and Fed Governor Adriana Kugler, suggest a possible easing of US monetary policy by late 2024, impacting the currency pair positively.

US Economic Data’s Mixed Signals

While the ADP report surpassed expectations with a 184K rise in private hiring, the Services PMIs from S&P Global and ISM showed a slight decline, presenting a mixed economic outlook in the US. These developments, coupled with the declining DXY, have provided a lift to the AUD/USD rate.

Aussie Services Sector Shows Strength

Australian economic indicators, especially the Judo Bank Services PMI, indicate robust service sector activity, with a notable jump to 54.4 in March.

This positive data point, marking continuous improvement, bolsters the AUD/USD price forecast, highlighting the Australian Dollar’s potential for sustained growth in the forex market.

AUD/USD Price Forecast: Technical Outlook

The Australian Dollar (AUD/USD) has shown a modest increase, trading at $0.65969, marking a 0.43% rise. The currency hovers around the pivot point of $0.6585, with immediate resistance levels identified at $0.6611, $0.6634, and $0.6654, hinting at potential upward barriers.

Support levels are positioned at $0.6562, $0.6545, and $0.6525, providing downside protection. The Relative Strength Index (RSI) at 71 indicates a strong bullish sentiment, possibly nearing overbought territory.

The 50-day Exponential Moving Average (EMA) at $0.65 underpins this uptrend, further corroborated by the ‘Three White Soldiers’ candlestick pattern, which traditionally signals a robust upward momentum.

Consequently, the AUD/USD pair presents a bullish outlook above $0.6585, yet a fall below this threshold could lead to significant bearish activity.