AUD\/USD rose 0.61% to 0.7077 on Wednesday, with broad US dollar weakness linked to improved market mood. The pair was near the day\u2019s high at the time of writing.<\/p>\n
The pair had fallen almost 1% on Tuesday, reaching a four-week low of 0.6944. The Relative Strength Index remained above 50 and was moving higher.<\/p>\n
A move above the March 3 daily high of 0.7122 would open the way to the yearly high at 0.7147. The next level above that is 0.7200.<\/p>\n
On the downside, initial support is at 0.7000. A drop below 0.7000 could lead back to 0.6944 and the 50-day simple moving average at 0.6904.<\/p>\n
With the AUD\/USD pushing towards 0.7080 on broad US Dollar weakness, we should position for further gains. The latest US inflation report showing a cooldown to 2.8% supports this soft dollar view, reducing pressure on the Federal Reserve. This makes buying call options with strikes above the 0.7122 resistance an attractive strategy for the coming April expirations.<\/p>\n
The Aussie’s strength isn’t just a dollar story; the Reserve Bank of Australia\u2019s recent hawkish tone has put rate hikes back on the table. Adding to this, iron ore prices have climbed back above $120 a tonne, a significant rise from the range-bound trading we saw in late 2025. This fundamental backdrop provides a solid foundation for upside exposure targeting the yearly high of 0.7147.<\/p>\n
We must also manage risk if the sentiment reverses and the pair fails to hold the key 0.7000 psychological level. Buying put options with a strike price around 0.6980 could offer effective protection against a sharp downturn. A decisive break below this support would shift our focus towards the recent low of 0.6944 as the next target.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" AUD\/USD climbed to 0.7077 as dollar weakened; resistance 0.7122\/0.7147, support 0.7000 then 0.6944.<\/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-50766","post","type-post","status-publish","format-standard","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/50766","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/users\/103"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/comments?post=50766"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/50766\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=50766"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=50766"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=50766"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}