The AUD/USD pair continues its upward momentum as investor sentiment weakened due to renewed uncertainty over the Federal Reserve’s policy direction. Market concerns increased after White House advisor Kevin Hassett indicated that legal options are being explored regarding Chair Jerome Powell’s position. This added pressure raised doubts about the Fed’s independence and stability. As a result, the US dollar came under pressure, supporting gains in the Australian dollar.
Meanwhile, US economic data remains weak, adding to the downside momentum in the US dollar. The chart below shows that inflation dropped to 2.4% year-over-year in March, down from 2.8% in February and below the forecast of 2.6%.
AUD/USD Technical Analysis – Key Resistance of $0.65
The 4-hour chart for AUD/USD shows that the pair has formed a strong bullish price structure. It has broken above $0.6390 and appears to be heading toward $0.65. A break above $0.65 would indicate a strong rally in the pair. The ongoing strength in the gold (XAU) market and continued pressure on the US dollar support the possibility of further upside in AUD/USD.
