AUD/USD Breakout Looms as US Dollar Falls Amid Bond Market Support
The AUD/USD currency pair is experiencing a moment of interest in the Forex market following yesterday's US Treasury announcement that it will support the long end of its bond market, leading to a sharp fall in the US Dollar.
Major currency pairs like this one are already in medium to long-term trends against the USD, and the AUD/USD is no exception. However, the Australian Dollar's recent unexpected rise in unemployment rate has made another interest rate hike by the Reserve Bank of Australia less likely over the near term.
This development may make the Aussie a little weaker than it would otherwise be, so traders may not want to go long on the AUD/USD for the rest of this week. Despite this, technical analysis suggests that the price chart is still reasonably bullish.
The current consolidation within an orderly linear regression analysis has been largely contained within an ascending price channel. There's also a significant higher low above the round number at 0.7100, indicating potential higher prices in the short term.