The AUD/USD currency pair advanced for the second consecutive day, reaching a three-day high around the 0.7170 level during the Asian session, following a modest dip on Monday [1]. Despite ongoing US-Iran tensions and a standoff over the Strait of Hormuz, the US Dollar (USD) remained under pressure, with buyers hesitant ahead of the upcoming FOMC meeting this week [1]. A generally positive risk tone and the Reserve Bank of Australia's (RBA) hawkish stance provided additional support for the Australian Dollar (AUD) against the Greenback [1].
From a technical perspective, the AUD/USD pair's recent range-bound movement is seen as a bullish consolidation phase, following a rally from the 100-day Simple Moving Average (SMA) touched in March [1]. Momentum indicators such as the Relative Strength Index (RSI) above 60 and a positive Moving Average Convergence Divergence (MACD) histogram suggest sustained upside pressure, with the path of least resistance remaining to the upside [1]. However, a decisive move above the 0.7185-0.7190 resistance area is required to confirm a bullish breakout [1].
On the downside, any corrective pullback is expected to find support ahead of the 0.7100 mark, with a break below this level potentially signaling a corrective phase within the broader bullish structure [1].
In terms of daily performance, the Australian Dollar was the strongest against the Swiss Franc, with a 0.28% gain, and also posted gains against other major currencies, including a 0.25% rise versus the US Dollar [1].
CONCLUSION
The AUD/USD pair's advance to a three-day high reflects ongoing bullish momentum, supported by a softer US Dollar and positive risk sentiment. Technical indicators point to further upside potential, though confirmation of a breakout awaits a move above the 0.7185-0.7190 range. Market participants remain cautious ahead of the FOMC meeting, but the AUD continues to show relative strength against major currencies.