AUD/USD Surges Above 0.7100 Ahead of RBA Rate Decision

The AUD/USD exchange rate has been trending upwards, closing out the week at 0.7124 after breaking through the crucial 0.7100 barrier.

This move has sparked interest among traders, with some positioning for a Reserve Bank of Australia rate hike on September 29.

A strong trade surplus and solid demand from global markets have contributed to the AUD's attractiveness, particularly in light of its large export market, with iron ore being a significant contributor at $118bn per year based on 2021 data.

Technical analysis suggests that the Relative Strength Index is nearing a turning point, while key resistance levels lie at 0.7168 and 0.7237, with support found near the 50-day Simple Moving Average at 0.7084.