US Rates Rise Amid Middle East Tensions Drive Currency Markets

The US interest rates rose in early trading on Thursday, amid ongoing Middle East tensions.

The Australian dollar (AUD/USD) is experiencing a relatively flat session, as it trades around 0.70410, near its 50-period EMA.

AUDUSD's recent strong move has brought the pair to an area that previously acted as resistance on June 14th, causing some market-memory-led resistance.

This could lead to pullbacks attracting value hunters, with the 0.70 level being a key area of interest for support on any potential retreat.

In contrast, the US dollar (USD/CHF) is grinding higher against the Swiss franc, rebounding off its lows and sitting between its 50-period EMA at 0.80839 and its 200-period EMA at 0.81048.

The USDCHF is trying to break above the 0.8105 region, an area that has been somewhat resistant over the last couple of days.

A breakout from here could lead to a more bullish market environment, with FOMO trading likely to follow, given the interest rate differential favoring holding this pair to the upside.

The US dollar (USD/CAD) is trying to rally against the Canadian dollar at an area around 1.40, which has historically been a support zone from a longer-term perspective.

A double bottom could be forming, with higher interest rates in America paying traders to hold this pair long-side, although the interest rate differential isn't massive.