Last Updated on August 21, 2026 by Deon
The AUD/USD pair is showing strength on Friday, August 21 as buyers push the Australian Dollar to its highest level since June. The recovery happens after the pair had some difficulty following Australian employment data. The US Dollar is weaker. That is helping the Australian Dollar gain momentum.
According to FXStreet AUD/USD has made a recovery and is now testing levels that might allow for more gains above the 0.7150 psychological barrier.
AUD/USD Gains as US Dollar Weakness Supports Bulls
The US Dollar has been under pressure as markets keep looking at expectations for Federal Reserve interest-rate policy. Recent weaker US economic data has made traders think that there may not be more tightening, which is putting pressure on the US Dollar.
Reuters said this week that weaker US employment and inflation data made markets think that the Federal Reserve might not raise rates in September.
This situation is helping currencies, including the Australian Dollar. A weaker US Dollar makes AUD/USD more attractive because the pair is cheaper for buyers using currencies.
Australian Jobs Data Fails to Stop the Uptrend
The Australian Dollar had some pressure after domestic employment numbers. However sellers could not hold on for long.
The ability of AUD/USD to come back after the jobs drop is important in terms. It shows that buyers are still interested in the pair especially when dips are met with demand.
The overall positive trend has been building for weeks. This month AUD/USD was already near its highest level since June with technical analysts saying there could be more gains if resistance levels were broken.
0.7150 Becomes the Main Resistance Level
The 0.7150 level is now an area for traders dealing with AUD/USD.
A move above this level could make the positive outlook stronger. Show that buyers are getting ready for another rise. If the break is confirmed traders might start looking at the 0.7200 level as the major target.
Previous technical analysis has also mentioned the 0.7190 to 0.7200 area as a place to watch after a break above 0.7100.
Traders should be careful about thinking a short move above resistance is a confirmed break. AUD/USD might need to stay above the level for a time before the positive move is confirmed.
AUD/USD Technical Outlook
From one point of view the short-term trend is still positive as long as the pair stays above recent breakout areas.
If buyers move AUD/USD above 0.7150 the next target could be 0.7200. A clear move above 0.7200 would make the positive structure stronger. Could lead to higher levels.
If the pair fails to break 0.7150 there could be a period of staying in a range. In that case traders might look at the 0.7100 level for support.
A move below 0.7100 would weaken the positive momentum and could lead to taking profits by recent buyers.
Key AUD/USD Levels to Watch
Level Importance
0.7200 target for higher prices
0.7150 Main resistance and break area
0.7100 First level for support
0.7050 More support area
These levels are guides, not sure price targets and the market can change quickly.
Fed Expectations Still Matter
Expectations about the Federal Reserve are likely to continue being a factor for AUD/USD.
The US Dollar has been weak because traders are expecting rate increases. Reuters said that markets had started to expect the Federal Reserve to hold rates after US economic data.
If the US data continues to show growth or lower inflation the US Dollar could stay weak. That could give AUD/USD room to go up.
On the hand stronger US data or a more aggressive Federal Reserve outlook could make the US Dollar more popular and limit the Australian dollar’s recovery.
What Might Move AUD/USD Next?
In addition to levels traders will keep watching global risk sentiment, commodity markets Australian economic data and what central banks say.
The Australian Dollar often reacts to changes in investor risk appetite. A better global market environment can help the currency while more risk aversion might lead to selling.
Geopolitical events are another thing to watch. Tensions can increase demand for safe-haven currencies like the US Dollar, which could be a problem for AUD/USD.
AUD/USD Forecast: Bulls Aim Higher
The short-term outlook for AUD/USD is still positive even though the pair is near its level since June. The recovery despite the employment disappointment shows that buyers are still in control and the US Dollar weakness is helping.
For the bulls the immediate challenge is to break above 0.7150. If that happens the 0.7200 area could be the main goal.
Traders should watch how the price moves around the resistance level. A failed break and a move below 0.7100 would suggest that the pair needs time to stay in a range before trying again.
Overall the weaker US Dollar and the positive technical momentum keep the possibility of prices open but upcoming economic data and changes in Federal Reserve expectations could quickly change the situation.
