AUD/USD Breakout on Two-Year Yield Spread Horizon

The Australian dollar has managed to hold its ground against the US dollar's recent upward movement. A key factor in this resilience is the widening gap between the two-year yields of Australia and the United States, which could potentially lead to a breakout.

Currently, the AUD/USD pair continues to respect the June Value Point of Control (VPOC) as resistance. Even if bulls manage to break above it, they will still need to contend with the monthly R1 pivot point and the June 15 high.

A breakthrough above $0.7100 could provide a significant test for this risk-on rally. For now, however, FOREX.com remains cautious, predicting that AUD/USD may form a swing high and snap its four-week winning streak.