Highlights:
- AUD/USD maintains upward momentum despite mixed domestic data.
- NZD/USD eyes a breakout as bullish structure forms near key resistance.
- USD/JPY consolidates, with traders awaiting a clear technical breakout.
Aussie Dollar Rebounds After Dip on Soft Data; Greenback’s Weakness Offers Tailwind
The Australian Dollar (AUD) retraced briefly after underwhelming domestic economic data, including lower-than-forecast retail and construction activity for May. AUD/USD pulled back from highs near 0.6600, pausing a broader bullish trend. Yet, the US Dollar’s sustained weakness helped the pair recover quickly, reinforcing the bullish structure. Notably, year-on-year retail sales in Australia still showed an encouraging 3.3% gain for May 2025.
US Dollar Attempts Rebound on Strong Labor Data – But Trend Remains Bearish
The US Dollar saw a modest bounce from oversold conditions, supported by a better-than-expected JOLTS job openings report and signs of stabilization in manufacturing. Despite the temporary lift, technical indicators and broader sentiment suggest the recovery may be fleeting, as the longer-term bearish bias remains intact.
Fed Chair Jerome Powell struck a cautious tone, emphasizing the need to assess tariff-related inflation risks before adjusting interest rates. Meanwhile, financial conditions remain loose, and the Fed’s slower balance sheet runoff indicates continued support for liquidity.
AUD/USD Technical Picture: Ascending Broadening Wedge in Play
The 4-hour chart highlights an ongoing consolidation within an ascending broadening wedge. Resistance looms near 0.6650 — a key level tied to a multi-month trendline. A breakout above that area could open the door to further gains, while support around 0.6400 remains critical for maintaining the pair’s bullish posture.
NZD/USD Technical Picture: Breakout Nearing as Bulls Hold Control
NZD/USD is carving out a bullish structure within a 0.5850–0.6090 zone. Strong support around 0.5850 has formed a base for potential upward momentum. A confirmed breakout above 0.6090 could trigger a fresh bullish leg higher, backed by multiple reversal patterns on the lower end of the range.
USD/JPY Technical Picture: Prolonged Range Signals Uncertainty
USD/JPY continues to oscillate within a defined band between 142.00 and 148.30. The formation of a descending broadening wedge highlights a waiting game in the market. Bulls would need a sustained breakout above 151 to regain control, while a move below 142 might lead to downside pressure toward the long-term support area at 140. The ongoing sideways action reflects a pause in momentum, awaiting new catalysts.
Stay Updated with Daily Forex Pakistan.