The Australian Dollar (AUD) experienced a significant rebound, appreciating by 4% from its overnight lows, following the announcement of a 90-day tariff pause by the United States on several nations. As of the latest observation, the AUD/USD pair was trading around 0.6170, according to FX analysts Frances Cheung and Christopher Wong at OCBC.
This upward movement coincides with a broader positive trend in regional equity markets. Several indices demonstrated substantial gains, including Taiwan (up >9%), KOSPI, STI, and Nikkei (all up more than 5%). Furthermore, the AUD has seen a slight increase this morning, driven by reports indicating that Chinese leaders are scheduled to convene and discuss potential stimulus measures in response to the recent tariff developments.
Technical analysis suggests a weakening of bearish momentum on the daily chart, accompanied by a rise in the Relative Strength Index (RSI) from near oversold territory. Key resistance levels are identified at 0.6160 (the 23.6% Fibonacci retracement level from the October high to the April low), 0.6250/80 (the 21-day and 50-day moving averages), and 0.6310 (the 38.2% Fibonacci retracement level). Conversely, immediate support is anticipated at 0.60, with further support at 0.5915 (the recent low).
