AUD/USD Price Forecast: Bulls eye 0.7200 after 0.7100 break
The Aussie Dollar is poised to end the week on a positive note versus the US Dollar, up 0.21% as improved risk appetite keeps AUD/USD trading near 0.7124, closing near Friday's highs.
The Australian Dollar (AUD) is expected to rise to 0.7200 after breaking below 0.7100, according to market forecasts. The AUD/USD pair has been trading near 0.7124, with a two-day high of 0.7136 before settling around 0.7120. The Relative Strength Index (RSI) indicates that the index is bearish but may turn bullish, suggesting that buyers anticipate further upside.
The Reserve Bank of Australia (RBA) is likely to raise interest rates at the September 29 meeting, which could contribute to the AUD's upward momentum. If AUD/USD extends its gains beyond the current week's high of 0.7168, the pair could reach 0.7200. The next target would be the September 9 daily high of 0.7237, followed by the May 6 cycle high of 0.7277.
Conversely, if AUD/USD drops below the 50-day SMA of 0.7084, the next point of support would be the 100-day SMA at 0.7078. Additionally, a breach of the September 16 swing low of 0.7075 could trigger a challenge to the 200-day SMA at 0.7012. Factors influencing the AUD include the RBA's interest rate decisions, China's economic performance, iron ore prices, and China's growth data.
Australia's large iron ore exports and China's trade relationship with the country also impact the AUD's value.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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