The Australian dollar rallies on risk-on sentiment, clearing a critical moving average and eyeing further gains toward 0.7200 resistance.
The AUDUSD pair surged above its 200-hour moving average at 0.71608, driven by improving risk sentiment and optimism over Middle East diplomatic progress. Commodity-linked currencies benefited as traders shifted away from safe-haven assets, fueling demand for higher-beta currencies like the Australian dollar.
Earlier in the session, the pair fluctuated around the 200-hour MA, but a decisive break above the level solidified near-term bullish momentum. The next resistance zone lies between 0.71936 and 0.7200, where profit-taking may emerge. A sustained push above this area could open the door to further gains toward 0.7221-0.7227.
Technical momentum now favors buyers, with a potential test of late April highs near 0.7277 if upside pressure persists. The shift in sentiment underscores a broader rotation into risk assets, supporting the Aussie’s rally.