Aussie Nears 0.7200 as Dollar Awaits Warsh at Jackson HoleAUD/USDTASTYFX:AUDUSDtastyfxAUD/USD traded 0.33% higher on Thursday, lifting the pair toward 0.7200 and its highest level since late May. The move also puts AUD/USD on track for a ninth straight weekly gain. The rally has stairstepped higher since the June lows, with the pair chopping for days at a time around each round number before trading decisively through it, and 0.7200 is now the next of those tests. The domestic case for the Aussie Dollar was established earlier in the week. Australian inflation came in above expectations, keeping further RBA tightening firmly in play, with some economists now positioning for a hike as soon as the September meeting. That leaves the near-term swing factor on the Dollar side, where the currency is balancing a hot PCE reading that argues for a firmer policy stance against a risk-on tone that erodes safe-haven demand. Risk appetite has been winning in this pair, which is unsurprising for a high-beta currency carrying a live domestic tightening story behind it, but Fed Chair Kevin Warsh's Jackson Hole address on Friday is the event capable of resetting that balance into the weekend. Australian GDP next week follows as the next scheduled test of the domestic case for higher rates. In the above chart, AUD/USD rates are approaching 0.7200, a level that repeatedly capped rallies in the spring as the shoulders of a head and shoulders top. That formation has lost most of its predictive value now that price has recovered to where the pattern began, but the horizontal supply it left behind is still the obstacle in front of the market. The one time the pair cleared this area, the rally extended to just shy of 0.7300, the logical next reference point on a daily close above 0.7200. Momentum is worth watching from here. RSI has reached 70, a threshold commonly read as overbought, though in a trend that has held for nine weeks that reading can equally reflect the strength of the move rather than signal a turn. A clearer warning would be RSI failing to make a new high alongside price. To the downside, a rejection at 0.7200 that leaves a lower high would put the weekly streak at risk, and given how abruptly the pair has flushed on reversals this year, 0.7100 stands as the next congestion point below.