AUD/USD is the day's biggest mover, trading at its highest level since early June
Key Takeaways
- •AUD/USD rose 0.86% to touch 0.7178, its highest level since early June, making the Australian dollar the strongest major currency against the US dollar on the day.
- •The pair set its weekly low on Wednesday, briefly slipping below the 50% retracement at 0.7070 without reaching the nearby 100-day moving average, before rallying after the US Treasury announcement and broad dollar selling.
- •The advance has been accompanied by sharply higher gold and silver prices, significant for Australia as a major exporter of iron ore, coal, and gold, while Bitcoin rose 6.45% on the day and roughly 23% for the week.
- •The 61.8% retracement of the May-to-June decline at 0.71193, together with earlier weekly highs near 0.71317, now forms the key support area for the pair.
- •As long as AUD/USD holds above the 0.71193–0.71317 support zone, buyers remain in control with the 0.71993–0.7200 swing area as the next upside target, while a move below that zone would give sellers control.
The Australian dollar is the strongest of the major currencies against the US dollar today, gaining 0.86% and lifting AUD/USD to its highest level since early June. The pair has touched a high of 0.7178, and the next key upside target sits in the swing area between 0.71993 and 0.7200.
Turning to this week's price action, AUD/USD traded back and forth through the first half of the week before setting its weekly low on Wednesday. That pullback brought the pair down to test the 50% retracement of the decline from the May 1, 2026 high to the June low at 0.7070. The 100-day moving average was also nearby, adding to the technical significance of the zone.
The price slipped briefly below the 50% retracement but could not extend down to the 100-day moving average. Buyers stepped in, and AUD/USD subsequently raced higher following the U.S. Treasury announcement and the broader US dollar selling that came in its wake.
After an up-and-down consolidative session yesterday, the pair has made another strong run to the upside today. The gains have come alongside surging commodity prices, with gold and silver sharply higher. That backdrop is particularly relevant for the Australian dollar: Australia is one of the world's major commodity exporters, with iron ore, coal and gold among its key shipments, and the aussie has historically traded in step with raw-material cycles, serving as a widely followed barometer of risk appetite in currency markets. Bitcoin has added to the broader risk appetite as well, rising another 6.45% today and approximately 23% for the week.
On the technical side, AUD/USD is now extending away from the 61.8% retracement of the May-to-June decline at 0.71193. That level, together with the earlier weekly highs near 0.71317, now forms an important support area for buyers.
As long as the price remains above 0.71193–0.71317, buyers stay firmly in control and the focus remains on the 0.71993–0.7200 swing area. It would take a move back below that support zone to give sellers some control and weaken the bullish technical picture. How the US dollar trades in the wake of the Treasury announcement, and whether the commodity rally persists, now forms the fundamental backdrop against which those chart levels will be tested.
