Snapshot: AUD/USD trades at 0.7240, up 0.28% on the session. The Aussie is finding support from rising copper prices, which are up 2.06%. Traders are awaiting clearer signals on the RBA’s rate path, with the next meeting on May 20th.
- Watch for a break above 0.7249, today’s high, to signal further upside.
- Squeeze risk is elevated given the crowded long positioning.
Bias into NY: We are neutral to slightly bullish on AUD/USD. The RBA’s cautious stance, highlighted by Bullock’s assessment that inflation progress is ‘still uneven’, provides a floor. A break above 0.7250 could target 0.7280, while DXY strength remains a risk.