The Australian dollar continues to appreciate and growth may be confined

Aussie rose slightly to 0.6510 during Friday’s session.
The Australian pair’s gains are being impacted by the widespread weakening of the US dollar.
The Australian finds support but faces pressure from concerns over the China-US trade war.

On Friday, the AUD/USD pair continued to rise for a third straight day, although it trimmed some of its intraday gains and remains above the psychological threshold of 0.6500. The pair recently hit a multi-day high before paring back some of its intraday gains. The positive dynamics of this pair is mainly due to the widespread weakening of the US dollar.

Despite signs of resilience and strength, the US dollar remains under pressure against most major currencies. The weakness of the US dollar results primarily from the dovish comments of Federal Reserve Chairman Jerome Powell, who suggested a break in the cycle of interest rate increases in the US. This led market participants to speculate that the Fed might not raise interest rates as aggressively as previously expected.

Daily market movement summary: Australian dollar mixed, trade war fears limit growth

AUD/USD continues its upward trend for the third day in a row despite a slight deceleration in intraday gains.
The AUD/USD pair reversed early gains and traded around 0.6500 on US-China trade war concerns.
The US is set to unveil further AI chip sanctions against China as soon as Monday, weighing on AUD/USD amid risk-free market sentiment.
This week, the AUD gained support from USD weakness, despite mixed economic data from Australia and a hawkish stance from the Reserve Bank of Australia.

AUD/USD Technical Outlook: Outlook improves as bulls gain momentum and indicators signal further gains ahead

The AUD/USD continued to gain ground and approached the 20-day plain moving average (SMA) but was rejected. However, the outlook remains positive as growth momentum continues to raise.

The AUD/USD pair is likely to find support at the 20-day SMA and the rising trend line from the August low. On the other hand, immediate resistance is located at the 0.6550 and 0.6600 areas. A break above this resistance area could lead to further gains towards the 0.6700 level.