The AUD/USD pair extends gains for the third straight day on Friday, although it has trimmed a portion of its intraday gains and holds above the 0.6500 psychological threshold. The pair recently reached a multi-day high before retracing some of its intraday gains. The positive momentum in the pair is influenced mainly by broad-based US Dollar weakness.

Despite showing signs of resilience and gaining, the US Dollar remains under pressure against most major currencies. The weakness in the US Dollar is primarily due to dovish comments from Federal Reserve Chairman Jerome Powell, who hinted at a pause in the US interest rate hiking cycle. This has led market participants to speculate that the Fed may not raise interest rates as aggressively as previously anticipated.

Daily digest market movers: Australian Dollar mixed, trade war concerns limit the upside

• AUD/USD is maintaining its upward trend for the third consecutive day despite a slight pullback in intraday gains.
• The AUD/USD pair reversed early gains and trades mixed around 0.6500 amid concerns over the US-China trade war.
• The US is set to unveil further AI chip sanctions against China as early as Monday, which is weighing on the AUD/USD due to risk-off market sentiment.
• This week, the AUD has gained support due to weakness in the USD, despite mixed Australian economic data and a hawkish Reserve Bank of Australia.

AUD/USD technical outlook: Outlook improves as bulls gain momentum, indicators signal further gains ahead

The AUD/USD pair continued to gain ground and approached the 20-day Simple Moving Average (SMA) but faced rejection. However, the outlook remains positive as bullish momentum continues to build.

The AUD/USD pair is likely to find support at the 20-day SMA and the ascending trendline from the August low. On the upside, immediate resistance is at 0.6550 and 0.6600 areas. A break above this resistance area could lead to further gains toward the 0.6700 mark.

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