Also benefiting from slight dollar weakness across the board
AUD/USD now touches a high of 0.7388 in trading, and looks set for a test of a confluence of key near-term resistance levels around the 0.7400 handle.
The turnaround in risk sentiment from yesterday is helping to give the aussie a relief rally on the day, with AUD/USD having bottomed out at the 6 July low before moving higher in the last five hours.
The pair looks set for a test of the 50.0 retracement level @ 0.7397 now with the figure level and offers at 0.7400 nearby as well. Not only that, the 200-hour MA (blue line) @ 0.7404 also sits around those levels too.
For buyers, the confluence of near-term resistance levels there will be a key test in the coming sessions. A break and hold above the 200-hour MA in particular will at least break the near-term bearish bias in the pair, and give more incentive for a push higher.
But the issue for the AUD/USD is that when the euphoria of the rebound in risk settles down, the fundamental story starts coming back in - and that is the fact that the yields spread between Aussie bonds and US bonds continue to favour the latter more as time goes by.
The Fed is continuing to hike rates while the RBA is not, and that has been a key driver in the move lower for AUD/USD so far this year:
