AUD/USD Surges on Powell's Dovish Tone, Eyes US PCE Data

AUD/USD posted its strongest daily performance in three months, rallying 1.2% (85 pips) to 0.6780 as dovish Federal Reserve commentary sparked aggressive US dollar selling. The Australian dollar found robust support at 0.6700, attracting significant dip-buying interest as risk appetite improved following Powell's Jackson Hole speech. The Fed Chair's acknowledgment of global growth concerns and openness to policy adjustments has shifted market expectations toward potential rate cuts. Australian fundamentals remain mixed, with iron ore prices stabilizing near $105/ton while domestic employment data shows resilience. Technical analysis reveals the next resistance at 0.6820 (50-day moving average), with momentum indicators turning bullish. This week's US PCE inflation data will be crucial, as a softer reading could propel AUD/USD toward the 0.6850 resistance zone, while stronger inflation might trigger profit-taking.