AUD/USD Poised to Challenge Multi-Year Top Amid Bullish Setup

The AUD/USD pair has maintained its position above the 0.7200 mark in the Asian session on Tuesday, building on its recent surge to a high not seen since May 14.

Expectations of another interest rate hike by the Reserve Bank of Australia (RBA) this month continue to support the Australian Dollar, while the US Dollar faces follow-through selling amidst a strengthening Japanese Yen.

Technical indicators also remain bullish, with the Relative Strength Index (RSI) near overbought levels and the Moving Average Convergence Divergence (MACD) line showing a small positive spread.

However, traders are cautious, awaiting this week's release of US inflation figures before placing new bets. A convincing break below 0.7145 could prompt technical selling and drag the pair below 0.7100.