AUD/USD and NZD/USD Chart Bullish Course Amid Dollar Weakness; USD/JPY Stuck in Neutral Territory

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.

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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.

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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.

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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.

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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.

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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.

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