AUDUSD Rallies Nine Straight Weeks Amid Hawkish Reserve Bank Stance

The AUDUSD currency pair has rallied for nine consecutive weeks and is on track to close its second month in the green. This bullish trend is attributed to the Reserve Bank of Australia's hawkish stance, which suggests a potential rate hike as early as September.

The RBA expressed readiness to act quickly due to increased inflation in July, providing additional support for the Aussie dollar. The technical picture on the daily chart remains increasingly bullish, with the pair pushing higher and cracking a target at 0.7205.

However, overbought conditions may temper the bulls' enthusiasm, leading to consolidation or limited correction before a fresh push higher. Traders are awaiting Fed Chair Warsh's speech in Jackson Hole for clearer signals about the Fed's trajectory on monetary policy, which could impact the US dollar.