AUDUSD Technical Breakout: Bullish Trend Builds

Introduction to AUDUSD

The AUDUSD currency pair-commonly known as the “Aussie-tracks the exchange rate between the Australian Dollar and the US Dollar. It is one of the most actively traded pairs in the forex market, driven by interest rate differentials, commodity prices, and overall risk sentiment. The Aussie is seen as a proxy for global growth due to Australia’s export-reliant economy, especially in mining. This pair is favored by both institutional and retail traders for its volatility and liquidity.

AUD-USD Market Overview

As of the latest daily analysis, AUD-USD is exhibiting signs of bullish recovery amidst a globally uncertain economic environment. The US Dollar is facing mixed data: while the NFIB small business index remains cautiously optimistic, the labor market continues to show strain with delayed and volatile JOLTS and ADP employment data, compounded by recent delays due to the government shutdown. On the Australian front, recent NAB Business Conditions data indicated improving sentiment, and the Reserve Bank of Australia (RBA) is maintaining a steady tone, with the next policy meeting set for February 2026. Traders are also watching US Treasury yield auctions and leading indicators, as they influence USD valuation indirectly through interest rate expectations. The macroeconomic landscape appears balanced, with both currencies facing competing pressures from internal economic data and central bank policy directions.

AUD/USD Technical Analysis

On the daily chart (D1), AUD/USD is moving within a long-term bearish regression channel, but since early 2025, the pair has shown clear bullish momentum. From the March 2025 lows, the price has ascended from the lower boundary of the regression channel toward its upper edge. Most recently, AUD USD has touched the PC (Price Channel) High Price Line at 0.66474, suggesting a potential resistance area. The Aroon indicator shows bullish bias: Aroon Up is at 85.71%, while Aroon Down is at 28.57%, both trending downward, signaling a possible consolidation or slight pullback. Meanwhile, the Coppock Curve sits at 2.78360, reinforcing medium-term bullish sentiment. If the pair sustains above the PC Centerline (0.65337), upside continuation toward 0.67 is likely; otherwise, a correction toward 0.64199 could unfold.

Final Words about AUD vs USD

AUD/USD is currently riding a wave of medium-term bullish momentum, although the broader trend remains bearish. The pair’s ability to stay above the regression centerline could be critical in determining the next direction. Traders should monitor upcoming US labor data and Australian economic releases, particularly the RBA’s tone in early February. If the Aussie continues to benefit from rising commodity sentiment and improved domestic business conditions, it may challenge higher resistance levels. However, any strong recovery in US employment or hawkish Fed outlook could reverse recent gains. Active risk management is advised as the pair nears critical technical levels.

Disclaimer: This AUDUSD analysis, provided by Unitedpips, is for informational purposes only and does not constitute trading advice. Always conduct your own Forex analysis before making any trading decisions.