AUD/USD advances to fresh multi-year highs above 0.7500

AUD/USD continues to push higher during American trading hours.
Renewed hopes for a US stimulus deal is boosting market sentiment.
US Dollar Index stays in negative territory below 91.00.

Eren Sengezer FXStreet

The AUD/USD pair extended its daily rally during the American trading hours and touched its highest level since June 2018 at 0.7528. As of writing, the pair was trading at 0.7515, gaining 0.95% on a daily basis.

Risk flows help AUD gather strength

The positive shift witnessed in market sentiment in the second half of the day seems to be providing a boost to risk-sensitive AUD. Although Wall Street's main indexes started the day deep in the negative territory, renewed optimism for a US coronavirus aid bill seems to be helping US stocks gains traction.

Earlier in the day, US Treasury Secretary Steven Mnuchin noted that a lot of progress was made regarding stimulus talks. On a similar note, House Speaker Nancy Pelosi said bipartisan negotiations on COVID-19 relief bill is making "great progress." Reflecting the upbeat market mood, the S&P 500 Index turned positive on the day.

On the other hand, the US Dollar Index stays below 91.00 on Thursday and allowing the AUD's market valuation to drive AUD/USD's movements.

Earlier in the day, the data from the US showed that the weekly Initial Jobless Claims increased by 137,000 to 853,000 but was largely ignored by market participants. Additionally, the core Consumer Price Index (CPI) in November stayed unchanged at 1.6% on a yearly basis as expected. There won't be any macroeconomic data releases from Australia on Friday.

Technical levels to watch for

AUD/USD

Overview
Today last price	0.7514
Today Daily Change	0.0072
Today Daily Change %	0.97
Today daily open	0.7442

Trends
Daily SMA20	0.7352
Daily SMA50	0.723
Daily SMA100	0.7218
Daily SMA200	0.689

Levels
Previous Daily High	0.7485
Previous Daily Low	0.7403
Previous Weekly High	0.745
Previous Weekly Low	0.7338
Previous Monthly High	0.7438
Previous Monthly Low	0.699
Daily Fibonacci 38.2%	0.7454
Daily Fibonacci 61.8%	0.7435
Daily Pivot Point S1	0.7402
Daily Pivot Point S2	0.7362
Daily Pivot Point S3	0.732
Daily Pivot Point R1	0.7483
Daily Pivot Point R2	0.7525
Daily Pivot Point R3	0.7565

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

GBP/USD extends the drop to 1.3360

GBP/USD builds on Monday’s decline and briefly clinches five-day lows near 1.3360 on Tuesday. Cable’s extra pullback follows the better tone in the Greenback as uncertainty in the Middle East prompts investors to adopt a cautious stance. Meanwhile, an apathetic UK labour market report also collaborates with the selling pressure on the British Pound.

EUR/USD holds gains above 1.1400 on hawkish ECB expectations despite US-Iran tensions

The EUR/USD pair trades with mild gains around 1.1405 during the early Asian session on Wednesday. A hawkish tone from the European Central Bank provides some support to the Euro against the US Dollar. Traders await the upcoming ECB interest rate decision on Thursday.

Gold hits two-week highs above $4,100 despite widening Mideast conflict

Gold hits two-week highs above $4,100 in the Asian session on Wednesday. The bright metal seems to ride the optimistic wave that diplomatic efforts are underway. However, concerns about energy-driven inflation risks continue to fuel Fed rate-hike bets. They could act as a tailwind for the US Dollar amid widening US-Iran tensions, which, in turn, could cap the bullion.

XRP rebounds on rising on-chain activity

Ripple (XRP) ticks up and trades around $1.13 at the time of writing on Tuesday. This rebound aligns with a broader recovery in the cryptocurrency market, attributed to reports that mediators between the United States (US) and Iran are seeking a 10-day cessation of strikes to find a way back to the signed Memorandum of Understanding (MoU).

The Iranian war has again risen

The Iranian war has again risen to the top of the economics factor list. There is no end in sight. Intelligence experts say the current level of offense/retaliation will not change minds in Tehran, while in Washington, Trump fears all-out war, which would mean boots on the ground.

US Dollar mid-year outlook: Exceptional currency, exceptional risks?

The US Dollar enters the second half of 2026 in a markedly different position from a year ago. The King currency has recovered, reflecting persistent US inflation, changing expectations for Fed policy, geopolitical tensions and renewed demand for defensive assets.