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AUDUSD hits a new session high as risk sentiment lifts FX

AUDUSD rose to 0.6991, clearing a prior resistance zone of 0.6963 to 0.6977, and traders now watch 0.7011 and 0.7033 for follow-through.

Reported · Written up by our desk · Major Pairs

Risk sentiment and a calmer rate outlook helped extend gains in U.S. stocks, and that push spilled into currency trading, with Australia dollar strength a key theme. Forexlive reports the NASDAQ was up about 0.8% and the S&P 500 was higher by roughly 0.4% as Fed Chair Warsh testified and the market digested better-than-expected CPI data.

In the session, AUDUSD climbed to a new session high of 0.6991 before easing slightly to trade around 0.6987. The move tested the 38.2% retracement level of the decline from the May 29 high near 0.6993, an area that also lines up with a mid-June swing zone.

A sustained break above that resistance would likely shift attention to a descending trendline around 0.7011, with the next upside objective at the 50% retracement near 0.7033. On the downside, the rally also broke above a former resistance band between 0.6963 and 0.6977, which has flipped into an important support area.

Forexlive adds that holding above the new support would keep buyers in near-term control, while a fall back below 0.6977 would signal disappointment for bulls and suggest upside momentum is fading.

Latest closeS&P 500 7,515.34 ▼0.8%|Nasdaq Comp. 25,873.18 ▼1.6%

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