AUD/USD Price Forecast: Pullback Looks Temporary as Bullish Trend Endures
Key Points
- AUD/USD shows medium-term bullish potential despite short-term pullback.
- Strong building approvals data from Australia supports the Australian dollar.
- Key support and resistance levels identified at 0.6835, 0.7095, and 0.7188.
Market Overview
The AUD/USD currency pair is currently experiencing a short-term pullback, but the overall medium-term outlook remains positive. The Australian dollar has shown resilience, gaining approximately 4% against the U.S. dollar year-to-date, and outperforming other major currencies like the euro and Japanese yen.
Recent Data and Economic Indicators
Recent data from Australia indicates a significant rebound in building approvals, with a month-over-month increase of 29.7% in February 2026, far exceeding the consensus estimate of 6.5%. This surge was primarily driven by higher-density residential approvals, suggesting a robust recovery in the housing sector.
Technical Analysis
On the weekly chart, the AUD/USD pair has pulled back but remains above longer-term support levels. The immediate support is around 0.6950, while the longer-term support is near 0.6725. A reclaim of the resistance level at 0.7095 would indicate a potential for renewed upward movement.
Outlook and Key Levels
The current trend for AUD/USD is neutral, with a positive bias. The key support levels to watch are 0.6835 and 0.67075, while resistance levels are at 0.7095 and 0.7188. The expectation is that the pair will stabilize around 0.6835 before attempting to rally back towards 0.7000, with a break above this level strengthening the bullish case towards 0.7188.
Conclusion
Despite the recent pullback, the AUD/USD pair is expected to regain its bullish momentum, supported by strong economic data and favorable technical indicators. Traders should monitor key levels for potential breakout opportunities.