AUD\/USD rose for a second day, reaching about 0.7170 in the Asian session after a modest dip on Monday. The pair stayed within a range that has held for around two weeks.<\/p>\n
The US Dollar remained weak as markets waited for this week\u2019s FOMC meeting. A generally positive risk tone reduced demand for the Dollar.<\/p>\n
AUD\/USD found support from the Reserve Bank of Australia\u2019s hawkish stance, despite stalled US-Iran peace talks and tension around the Strait of Hormuz. These factors helped keep the pair bid during the session.<\/p>\n
Technically, the recent sideways trading is described as bullish consolidation after a rally from the 100-day simple moving average, touched in March. Momentum indicators stayed positive, with the RSI above 60 and not overbought, and the MACD histogram in positive territory.<\/p>\n
A move above 0.7185\u20130.7190 is needed to break the range and confirm further upside. On pullbacks, support is seen ahead of 0.7100, while a clear move below 0.7100 would point to a correction.<\/p>\n
The article notes that the technical analysis was produced with help from an AI tool.<\/p>\n
We see the AUD\/USD showing positive signs, attracting buyers around the 0.7170 level. This move is supported by a hawkish Reserve Bank of Australia, especially after first-quarter inflation for 2026 came in at a firm 3.6%. This data reinforces the view that the RBA may keep rates higher for longer than other central banks.<\/p>\n
A softer US Dollar is helping the Aussie’s advance ahead of this week’s critical FOMC meeting. With core inflation in the US still hovering around 2.8%, traders are hesitant to bet on a decisive policy signal from the Federal Reserve just yet. This uncertainty is weighing on the greenback and benefiting risk-sensitive currencies like the Aussie.<\/p>\n
We also see fundamental support from key commodity prices, with iron ore holding steady above $115 per tonne. Furthermore, recent data showed China’s economy grew by a solid 5.3% in the first quarter of 2026, boosting confidence in Australia’s largest trading partner. This positive external environment provides a tailwind for the Australian dollar.<\/p>\n
For derivatives traders, this sets up a potential play on a bullish breakout. Buying call options with a strike price just above the 0.7190 resistance could be a way to position for a sustained move higher. We remember from the volatility in 2025 that these ranges can break decisively once a catalyst like an FOMC meeting appears.<\/p>\n
On the other hand, dips toward the 0.7100 mark may present opportunities to enter long positions or sell put options. Traders could consider selling cash-secured puts at or below this level to collect premium while defining an entry point. A firm break below that support would suggest this bullish view needs to be reassessed.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" AUD\/USD extends gains near 0.7170 as dollar weakens; RBA hawkishness supports; breakout above 0.7190 eyed.<\/p>\n","protected":false},"author":103,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-48705","post","type-post","status-publish","format-standard","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\n\t\t