The AUDUSD and NZDUSD are both moving higher to start the North American session, supported by an improving risk-on backdrop and constructive technical developments.
U.S. equity futures are pointing to a stronger open, with S&P 500 futures up roughly 21 points and Nasdaq futures ahead by about 252 points
Helping sentiment are reports that discussions are continuing around a possible 10-day cease-fire in the Middle East, along with renewed optimism that the Strait of Hormuz could reopen to normal shipping traffic. Those headlines have encouraged investors to move back toward risk-sensitive assets, providing a tailwind for both the Australian and New Zealand dollars. For the AUDUSD, the technical picture has also shifted more favorably for buyers.
The pair found willing buyers on Friday and again during today’s Asian session within a key swing area between 0.6962 and 0.6978. That support zone once again proved its importance, allowing buyers to define their risk against the lower end of the range and begin another move higher. The buying interest gained momentum after the pair broke above its 100-hour moving average and then successfully retested that moving average, currently near 0.6988.