AUDUSD Bullish Momentum Gathers Steam

Recent days have witnessed a robust bullish trend in the Australian dollar (AUD), largely fueled by a hawkish Reserve Bank of Australia (RBA). The RBA's commitment to maintaining a tighter monetary policy for a longer duration than other major central banks has bolstered the AUD.

Meanwhile, the US dollar's (USD) bullish momentum is waning as the Federal Reserve (Fed) signals a potential shift. This week, Fed Chair Powell indicated that recent inflation data may prompt the Fed to consider more the possibility of a rate cut in September. If upcoming US labor market data reveals weakness, the USD could face further downward pressure.

In anticipation of this week's labor market data, the USD could exhibit signs of weakness. Should Friday's Non-Farm Payroll (NFP) report come in below the consensus forecast of 190K, the AUDUSD pair could surge towards my target of 0.6800, especially following the decisive break from its previous trading range.