Snapshot: AUD/USD is holding near 0.7100 in early NY trading, underpinned by a mild risk-on sentiment but facing headwinds from the RBA’s reluctance to signal imminent rate cuts. Focus shifts to US data later this morning.
- Watch 0.7120 resistance; a break could open the door to further gains.
- A hawkish surprise from the US CPI could rapidly reverse Aussie’s fortunes.
Bias into NY: Neutral. While improved risk appetite is providing some support, the RBA’s cautious stance and crowded long positioning (98th percentile) leave the Aussie vulnerable to a squeeze on any disappointing data or hawkish signals from the Fed.