GBP/USD and AUD/USD defy seasonal weakness on broad dollar decline

Sterling and the Australian dollar are bucking their typical seasonal patterns, with GBP/USD advancing 0.4% to 1.2750 and AUD/USD climbing 0.5% to 0.6580 amid broad-based dollar weakness. Traditionally, both currencies face headwinds during this period, but disappointing US economic data has shifted the dynamic, pressuring the greenback across the board. Recent US indicators, including softer manufacturing PMI and cooling labor market data, have fueled expectations for more aggressive Federal Reserve rate cuts. Technical analysis shows GBP/USD breaking above its 50-day moving average at 1.2720, targeting resistance at 1.2800. AUD/USD has cleared the 0.6550 psychological level, with next resistance at 0.6600. The seasonal divergence suggests strong underlying momentum against the dollar, though traders should remain cautious of potential reversals if US data improves or risk sentiment deteriorates.