AUD/USD Price Outlook: Climbs toward 0.7080 amid broad US dollar softness

AUD/USD Rebounds as US Dollar Weakens

The Australian Dollar to US Dollar pair (AUD/USD) saw a notable recovery on Wednesday, advancing approximately 0.61%. This upward movement was fueled by a more optimistic market sentiment, supported by robust US economic indicators. At the current moment, the pair is trading near 0.7077, approaching the session's peak.

Technical Analysis: AUD/USD Outlook

Despite suffering a nearly 1% decline on Tuesday that drove the Aussie to a new four-week low at 0.6944, the technical setup for AUD/USD remains positive. The Relative Strength Index (RSI) is positioned above the neutral 50 mark and is trending upward, suggesting ongoing bullish momentum.

If buyers can push the pair above the March 3 high of 0.7122, further gains may be in store. A clear break above this level could pave the way toward the yearly high at 0.7147, with the 0.7200 mark as the next target.

On the other hand, initial support lies at 0.7000. Should this level fail to hold, the next area to watch is the March 3 low at 0.6944, followed by the 50-day Simple Moving Average at 0.6904.

Daily AUD/USD Price Chart