The Australian dollar surged past a key resistance level, erasing earlier losses amid shifting market sentiment.
AUD/USD climbed above 0.7000, rising 1.06% to trade 85 pips above a session low near 0.6950. The move marked a break through the 50-day Exponential Moving Average, a level that had repeatedly capped gains in recent weeks.
The pair had struggled to sustain momentum above 0.7000, facing repeated rejections at the technical barrier. The latest advance suggests a shift in sentiment, though the sustainability of the rally remains uncertain.
Market reaction was immediate, with the currency pair extending gains in early European trading as traders reassessed positioning.