Snapshot: AUD/USD is currently trading at 0.7239, up 0.75% on the session, buoyed by a weaker dollar and a decent lift in copper prices. Domestically, the RBA’s reluctance to commit to a cut path, highlighted by Bullock’s recent comment that inflation progress remains ‘uneven’, underpins the currency despite falling AU yields. Watch 08:15 ET ADP.
- AUD/USD broke above 0.7200 resistance, targeting intraday highs near 0.7278.
- Crowded long positioning in AUD (96th percentile) leaves it vulnerable to a sharp correction on any dovish RBA repricing or risk-off event.
Bias into NY: Expect further upside in AUD/USD towards 0.7300 if risk appetite remains firm and copper continues its ascent; however, a stronger-than-expected ADP print at 08:15 ET could trigger a USD short squeeze and pressure the Aussie lower.