AUDUSD is at a five-week high supported by positive US and Chinese data

The AUDUSD pair rose to 0.6314 on Friday. Investors are keeping an eye on the issue of US tariffs on China. Discover more in our analysis for 24 January 2025.

AUDUSD forecast: key trading points

• The AUDUSD pair rose to a five-week high
• The prospect of avoiding a crisis between the US and China is good news for Australia
• AUDUSD forecast for 24 January 2025: 0.6323 and 0.6350

Fundamental analysis

The AUDUSD rate surged to a five-week high and reached 0.6314.

This was due to the news landscape. US President Donald Trump made it clear that he favours a trade agreement with China instead of imposing tariffs. Australia and China have close trade and economic relations, so everything related to China is important for the AUD.

Business activity in Australia remained positive in January. The services sector saw an increase, while the manufacturing sector was busy stabilising the situation.

The focus is now shifting to Australia’s inflation report scheduled for next week. Its data may increase expectations for a Reserve Bank of Australia interest rate cut in February.

The AUDUSD forecast is favourable.

AUDUSD technical analysis

On the AUDUSD H4 chart, quotes still have an opportunity to consolidate above 0.6323. In this case, a new growth target will be the area between 0.6325 and 0.6350.

An intermediate support level is at 0.6296, with 0.6246 below it.

Summary

The AUDUSD pair has markedly strengthened. External risks for Australia are decreasing, giving a reason for optimism. The AUDUSD forecast for today, 24 January 2025, suggests growth to 0.6350.