AUD Breaks Above Resistance as US Dollar Weakens

The AUD/USD currency pair has shown significant strength in recent days, rising over 0.82% on Friday and 1.20% for the week as a whole.

This gain can be attributed to the US Treasury Department's announcement of a bond buyback for the long end of the curve, which has led to a decline in the value of the US dollar.

The AUD/USD pair is now trading at 0.7170, having broken above the June 4 daily high of 0.7149 and reclaimed its 100-day simple moving average (SMA) at 0.7969.

This technical breakout has been supported by fundamental drivers such as Australia's robust trade balance, which is being fueled by iron ore prices stabilizing above $100 per metric ton, as well as China's industrial stimulus measures that are revitalizing demand for Australian resources.