The Australian dollar rallies to 0.6991, testing key resistance levels amid stronger risk sentiment and U.S. equity gains.
The AUDUSD pair climbed to a session high of 0.6991 before settling near 0.6987, driven by improved risk appetite as U.S. stocks extended gains. The NASDAQ rose 0.80%, or 204 points, while the S&P 500 added 0.37% during Fed Chair Warsh’s testimony and better-than-expected CPI data.
The rally tested the 38.2% Fibonacci retracement of the May 29 decline at 0.6993, aligning with a mid-June swing area. A sustained break above this level could target a descending trendline near 0.7011, with the 50% retracement at 0.7033 as the next upside objective.
Support now rests at the former resistance zone of 0.6963-0.6977, with a break below signaling potential momentum loss for bulls.