Snapshot: AUD/USD trades at 0.7152, up 0.28% as risk appetite returns ahead of the New York open. The move higher is primarily driven by broad USD weakness, with the DXY down 0.31% to 98.36 and US yields backing up, while Trump speaks at 17:00 London.
- Aussie has broken above prior intraday resistance around 0.7140; next level to watch is 0.7175.
- CFTC data shows a crowded net long position (87th percentile), increasing the risk of a sharp correction if the risk bid falters.
Bias into NY: We favour further upside in AUD/USD, targeting 0.7200, as long as risk sentiment holds and US yields remain under pressure. A break below 0.7130 would negate this view.