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AUD/USD Price Forecast: Aussie rejected at 0.7100, upside risks persist

The Australian Dollar (AUD) is poised to end Friday’s session flat against the US Dollar (USD), even though an improvement in market mood drove the Greenback toward four-week lows near 98.52, according to the US Dollar Index (DXY).

🔗 Source

💡 DMK Insight

The AUD’s flat performance against the USD signals a potential consolidation phase, especially with the DXY nearing four-week lows. Traders should note that while the market mood has improved, the AUD’s inability to capitalize on the USD’s weakness suggests underlying caution. This could be indicative of broader economic concerns or a lack of momentum in Australian economic indicators. If the DXY breaks below 98.50, it might trigger further selling pressure on the USD, but the AUD needs to show strength to take advantage of this. Watch for key resistance levels around 0.6500 for the AUD/USD pair; a breakout above could signal a shift in sentiment. Conversely, if the DXY rebounds, it could put downward pressure on the AUD. Keep an eye on upcoming economic data releases from Australia, as they could provide the catalyst needed for a directional move. The real story is whether the AUD can break free from its current range or if it will remain tethered to the USD’s fluctuations.

📮 Takeaway

Watch the AUD/USD pair closely; a breakout above 0.6500 could signal a bullish shift, especially if the DXY falls below 98.50.

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