AUD Soars to Two-Month Highs as Weaker USD Fuels Rally
The Australian Dollar (AUD) has reached two-month highs of 0.7129, driven by a weaker US Dollar in the wake of soft US economic data. The AUD/USD pair is trading at 0.7106, up 0.32%. This strength comes as investors weigh the impact of US President Donald Trump's comments on the US-Iran conflict, which has reignited inflationary fears.
The NY Fed Empire State Manufacturing Index rose to its highest level in four years, but the sub-components provided a mixed reading. The US economic docket will feature the Federal Reserve's last meeting minutes on August 19, followed by jobless claims data and Flash PMIs on August 20 and 21, respectively.
The technical outlook for AUD/USD remains bullish, with the pair holding above a dense floor of rising trend-line supports. Initial resistance is defined by the longer-term rising trend line around 0.7111, while support lies at the current trend-line pivot zone around 0.7105.