AUD/USD Poised to Test Multi-Year Top Amid Bullish Setup

The AUD/USD pair continues to draw support from firming RBA rate hike expectations and a weaker USD. Hawkish Fed bets limit deeper USD losses, capping spot prices ahead of key US inflation data.

The technical setup suggests that the path of least resistance for the pair is to the upside, with the recent close above 0.7200 coming on top of a strong rally from the 200-day Simple Moving Average (SMA), tested in June. Momentum indicators remain supportive, with the Relative Strength Index (RSI) hovering just shy of overbought and the Moving Average Convergence Divergence (MACD) line retaining a small positive spread.

The next notable resistance for the AUD/USD pair is its multi-year peak near 0.7272-0.7275, which could be reached if spot prices can break through the current consolidation phase. However, any corrective pullback towards the 0.7145 immediate support is likely to be bought into and remain limited, with a convincing break below this level potentially dragging the pair below the 0.7100 mark.