AUD/USD extended its gains for the fifth consecutive week on Wednesday, with the Australian dollar strengthening against the US dollar amid supportive labour market prints and easing tariff concerns in China, according to IG Markets. The currency pair closed the week higher at around 0.7084, marking a rare prolonged rally for the Aussie.
The latest Australian labour data indicated stronger employment metrics and wage pressures that have reaffirmed expectations that the RBA will remain focused on containing inflation. Traders noted that robust labour figures tend to underpin AUD strength, particularly when contrasted with softer activity indicators in the US.
Positioning in AUD/USD has been supported by recent tariff relief developments involving China, which have eased concerns about deteriorating trade conditions for commodity exporters such as Australia. Copper prices and other industrial metals have also climbed, giving commodity‑linked currencies like the AUD a further boost.
Despite broader risk‑off undertones triggered by unrelated political news in the United States, AUD/USD remained resilient within its trading range, suggesting that fundamental support for the pair has strengthened.
Technical analysts highlight that staying above the 0.7050 level bolsters the likelihood of further upside, with traders increasingly focused on whether AUD/USD can challenge the 0.72 resistance zone in the coming sessions. Commodity prices and Chinese economic signals remain key drivers.
Some investors are cautious, however, noting that overextension and profit‑taking near current levels could lead to short‑term pullbacks, especially if upcoming US economic data beats expectations. Still, the prevailing sentiment tilts bullish on AUD/USD for the near term.
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