AUD/USD Technical Analysis – Ascending Broadening Wedge Pattern
The 4-hour chart for AUD/USD shows that the pair is trading within an ascending broadening wedge pattern. It is consolidating around the $0.6400 area. A break below this level may lead to further downside toward $0.6320. However, a rebound could push the price toward $0.6570, which is near the long-term resistance line. The recent strength in the US Dollar Index is contributing to the decline in AUD/USD.
The Australian Dollar (AUD) weakened for the fourth straight session. AUD/USD extended losses after weak private capital expenditure data. The chart below shows disappointing Q1 performance, hurting confidence in Australia’s economy.
Meanwhile, the US Dollar (USD) strengthened after a US court blocked Trump’s “Liberation Day” tariffs. This legal setback reduced near-term trade tension, favoring the Greenback.
China’s export restrictions also pressured the AUD. The US responded by halting sales of semiconductors and chemicals to China. As Australia relies heavily on trade with China, such tensions negatively affect the AUD’s outlook. Meanwhile, China’s industrial profits rose 3% year-over-year in April, signaling economic resilience. However, this strength may prompt more aggressive US trade measures, which could further weigh on the AUD.
