Bullish view
Buy the AUD/USD pair and set a take-profit at 0.7300.
Add a stop-loss at 0.7050.
Timeline: 1-2 days.
Bearish view
Sell the AUD/USD pair and set a take-profit at 0.7050.
Add a stop-loss at 0.7300.
The Australian dollar continued rising this week, reaching its highest level since June 2022. It remains in a bull market after soaring by 21% from its lowest point in 2025 as focus shifts to the upcoming US inflation report.
Australian Dollar Jumps Ahead of US Inflation Data
The AUD/USD pair continued its strong upward trend as investors predict that the Reserve Bank of Australia (RBA) will maintain a highly bullish outlook this year.
The bank has already hiked interest rates this year, and analysts believe that it may continue doing so as energy prices remain at an elevated level. Some of the bank's officials have hinted at a potential hike in the upcoming meeting.
The next important AUD/USD news will come out on Wednesday, when the US releases the latest consumer inflation report, which will determine what to expect from the Federal Reserve.
Economists believe that the headline Consumer Price Index (CPI) remained at an elevated level in February even before the war in Iran started earlier this month.
The headline CPI is expected to come in at 2.4%, while the core inflation remained at 2.5%, slightly higher than the Federal Reserve's target of 2.0%. Inflation will likely hold steady as the Iranian war will likely continue for longer than Trump expects.
These numbers come a few days after the US published a weak jobs report. This report showed that the economy lost 92,000 jobs in February, its worst performance in years. Also, the unemployment rate rose modestly from 4.3% in January to 4.4% in February.
AUD/USD Technical Analysis
The daily chart shows that the AUD/USD exchange rate has rebounded in the past few days, moving from a low of 0.6945 to a multi-year high of 0.7166.
It has remained above the Supertrend indicator and moved above the 50-day and 100-day Exponential Moving Averages (EMA).
The pair has formed a bullish flag pattern, which is made up of a vertical line and a horizontal channel.
At the same time, the Relative Strength Index (RSI) has reversed and moved above the neutral point at 50.
Therefore, the pair will likely continue rising in the foreseeable future as bulls target the next psychological level at 0.7300. On the other hand, a drop below the key support level at 0.7050 will invalidate the bullish outlook.