NAB Research discusses AUD/USD technical outlook and highlights the importance of the weekly close above 0.6200 to signal a further short squeeze towards 0.6451 ahead of 0.6660/90.

"AUD/USD remains in a multi-year downtrend, however ST risk is currently on the topside. Weekly RSI broke above its previous multi-month range, amid a positive shift in MT momentum. This confirms a bullish multi-week bias," NAB notes.

"While weekly closes remain above 0.6180/0.6200 we anticipate a further short squeeze. Initial resistance at 0.6434/51 is likely to be tested in the coming one to two weeks. Only a break of 0.6451 would imply a test of 0.6660/90," NAB adds.