The pair is breaching the 0.7300 level today to move to its highest since 16 November. This comes as the dollar is slumping across the board, continuing from the dour mood yesterday. It’s pretty much a technical breakdown for the greenback against most major currencies, with the likes of the euro, pound, and loonie taking advantage.
The aussie is no exception as it is up 0.3% against the dollar today. Of note, AUD/USD is now testing waters above its 100-day moving average (red line) @ 0.7285. Hold a break above that and it opens up more room to roam for the pair to the upside.
The 0.7400 level is the next key target on any further upside leg from here, adding to the trendline resistance nearby and the 200-day moving average (blue line) @ 0.7425 currently.
That will offer the next key technical test for the pair, as buyers try to build a case for an extension higher with the dollar struggling to stay afloat this week.