The daily chart for the Australian dollar futures (D1UZ26) shows that prices are trending up and have recently hit a six-week high. See, too, that the moving average convergence divergence (MACD) indicator is in a bullish posture as the blue MACD line is above the red trigger line and both lines are trending up. The bulls have the near-term technical advantage.
Fundamentally, Australia’s economy is stable, as is its government. Its central bank is not overly dovish, and its commodity-export-driven economy is benefiting from rising commodity prices overall. In the meantime, the U.S. Dollar Index ($DXY) has backed well down from its recent high amid uncertainty regarding Federal Reserve leadership and policy.
