Last Updated on 28/08/2026
- AUD/USD climbs to a three-month peak as improving risk sentiment supports the Aussie.
- Resilient Australian consumer spending keeps the possibility of an RBA rate hike on the table.
- Fed Chair Warsh’s speech and upcoming sentiment data could influence the US Dollar’s next move.
The Australian Dollar (AUD) extended its gains to a three-month high of 0.7198 on Thursday, despite a steady US Dollar supported by stronger-than-expected labor market data and hawkish remarks from Federal Reserve officials. AUD/USD was last trading around 0.7194, up 0.34%.
AUD/USD advances as strong Australian spending and Wall Street gains outweigh Fed hawkishness
Wall Street continued to move higher, supported by NVIDIA’s latest earnings results. US economic data was mixed, with Initial Jobless Claims falling from 207K to 203K, beating market expectations of 208K. Meanwhile, the US Goods Trade Balance deficit widened from $102.1 billion to $118.8 billion in July.
The US Dollar Index (DXY), which measures the Greenback against a basket of six major currencies, remained broadly unchanged near 99.12 despite higher Treasury yields. The benchmark US 10-year Treasury yield climbed nearly three basis points to 4.676%.
Several Federal Reserve officials also delivered comments at the Jackson Hole Symposium. Cleveland Fed President Beth Hammack argued that policymakers should act now to contain persistent inflation, while Chicago Fed President Austan Goolsbee said the three-month inflation trend “doesn’t look terrible.” Boston Fed President Susan Collins adopted a more neutral tone but noted that a rate hike could be justified if inflation data proves disappointing.
Attention now turns to Fed Chair Kevin Warsh, who is scheduled to speak at Jackson Hole on Friday. Investors will also assess the University of Michigan’s final Consumer Sentiment reading for August for additional clues on the US economic outlook.
Meanwhile, Australian household spending increased 1.1% in July, according to data released Thursday. The resilient consumer demand could add further inflationary pressure and reinforce expectations for tighter monetary policy. Minutes from the Reserve Bank of Australia’s latest meeting also showed that policymakers had considered the possibility of raising interest rates.
With no major Australian economic releases scheduled, AUD/USD is likely to remain primarily influenced by movements in the US Dollar and broader market sentiment.
AUD/USD Price Forecast: Technical Outlook
On the daily chart, AUD/USD is trading around 0.7195 and retains a bullish near-term outlook, with the pair firmly positioned above the 50-, 100-, and 200-day simple moving averages, which are clustered near 0.7010. The pair is currently testing horizontal resistance around 0.7198, while the 14-day Relative Strength Index (RSI) near 70 points to overbought conditions. This could limit the pace of additional gains, although it has yet to provide a definitive reversal signal.
On the upside, the key near-term hurdle remains at 0.7198. A sustained break above this level could reinforce the bullish momentum and pave the way for further upside.
On the downside, initial support is found around 0.7195, while stronger support lies along the rising trend line and the 50-, 100-, and 200-day SMA cluster near 0.7010. A deeper correction could bring the pair back toward this broader support zone.
Leave a Reply