The AUDUSD pair has been a subject of interest for traders and analysts alike. The technical analysis indicates a strong buy signal. The pair shows positive momentum with the potential to extend gains while above 0.6340. However, a consolidation under 0.6340 would weaken the Australian dollar dragging it towards 0.6250.The pair is around a psychological level of 0.6400 and above that next target stands at 0.6442.
On the fundamental side, the AUD/USD has extended its recovery from monthly lows and climbed above 0.6400. This move was driven by a moderate improvement in risk sentiment, a decline in US Treasury yields and the ongoing correction of the US Dollar. However, The direction of the pair will depend on upcoming US data.
The fundamental backdrop favours the USD bulls and should cap any further gains. The AUD direction depends on trade terms with China, while US employment stats will also sway its trajectory.
In conclusion, both technical and fundamental analysis suggest a cautious approach towards AUDUSD. Traders should keep an eye on key resistance levels and upcoming economic data to make informed decisions.