AUDUSD rallies for the nine straight weeks, eyes 2022 peak

AUDUSD keeps firm tone and holds near the highest in 3 ½ months on Friday, on track for the ninth straight weekly gain and for the second consecutive monthly close in green.

The Reserve Bank of Australia kept hawkish stance and expressed readiness to act quickly (rate hike could be expected as early as September) as inflation picked up in July that provided additional support to Aussie dollar.

Technical picture on daily chart remains increasingly bullish, with the latest push higher cracking target at 0.7205 (Fibo expansion of extended third wave of five-wave cycle from 0.6865), though overbought conditions may temper bulls.

Consolidation or limited correction is likely to precede fresh push higher and potential attack at key barriers at 0.7277/83 (6 June 2026 and 3 June 2022 peaks).

Traders await the speech of Fed Chair Warsh in Jackson Hole (due later today) for possible clearer signals about Fed’s trajectory on monetary policy in coming months that would impact the US dollar.

Res: 0.7222; 0.7277; 0.7283; 0.7300
Sup: 0.7180; 0.7150; 0.7120; 0.7100