The pair extends a seven-week rally as USD weakness and Fibonacci breakout signal further upside potential near 0.7150.
The AUD/USD pair climbed to its highest level since early June, trading near 0.7140 in European hours, up 0.5% on the day. The move follows a brief pullback after weaker-than-expected Australian jobs data, with bulls now eyeing a push beyond 0.7150.
The US Dollar remains near a three-month low as markets scale back expectations for an immediate Federal Reserve rate hike. Technical indicators support the rally, with the pair breaking above the 61.8% Fibonacci retracement of its May-June decline and the RSI holding near 67, signaling constructive momentum.
Resistance is seen at the 78.6% Fibonacci level of 0.7188, while initial support lies at 0.7100. A sustained break above 0.7188 could open the door for further gains.