AUD/USD Forex Signal: Extremely Bullish Above 0.7220

The pair will likely keep rising as bulls target the next key resistance level at 0.7300.

Bullish View

• Buy the BTC/USD pair and set a take-profit at 0.7300.
• Add a stop-loss at 0.7127.
• Timeline: 1-2 days.

Bearish View

• Set a sell-stop at 0.7150 and a take-profit at 0.7100.
• Add a stop-loss at 0.7250.

The AUD/USD price moved sideways on Wednesday morning after the latest Australian GDP and Chinese PMI numbers. It is trading at 0.7185, which is about 5.32% above the lowest level in May.

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Australia GDP Data

The Australian economy did relatively well in the first quarter after the government decided to remove some of the previous travel restrictions. According to the country’s statistics agency, the economy expanded by 3.3% on a year-on-year basis. It rose by 0.8% from the previous quarter helped by strong consumer spending.

These numbers came a day after the agency published weak current account data for Q1. The accounts declined from over a$13.2 billion to a$7.5 billion. This happened as the net export contribution declined by 1.7% in the quarter.

Still, these numbers will likely have no major impact on the Reserve Bank of Australia (RBA), which is expected to deliver its decision on Tuesday. Analysts expect that the bank will deliver another rate hike as it struggles to prevent hyper-inflation.

Turning to the economic calendar, the next key data to watch will be the manufacturing output numbers from the US. Economists expect the data by Markit to show that the PMI dropped from 59.2 to 57.5. They expect that the ISM PMI data dropped slightly in May.

The AUD/USD pair will also react mildly to the latest JOLTs job vacancies numbers. The data is expected to show that the number of vacancies in the US remained above 10 million in April. These numbers will come a day after the Conference Board said that consumer confidence declined at a slower pace than expected.

AUD/USD forecast

The AUD/USD pair rose on the first trading day of June. It is trading at 0.7200, which is slightly below this week’s high of 0.7210. On the four-hour chart, the pair has moved between the 38.2% and 50% Fibonacci Retracement level.

It is being supported by the 25-day and 50-day moving averages and is between the ascending channel. Also, the pair has moved above the important support level at 0.7127. The pair will likely keep rising as bulls target the next key resistance level at 0.7300.