AUD/USD climbs toward 0.7170 as buyers anticipate a breakout from the current range amid a weaker US Dollar.

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economy, Financial Markets, Forex Market

AUD/USD picks up dip-buying interest on Monday, supported by a mildly weaker US Dollar.
A hawkish stance from the RBA helps offset concerns over US–Iran tensions, lending strength to the Aussie.
Meanwhile, the technical outlook remains bullish as traders turn their attention to the upcoming FOMC decision.

AUD/USD edges higher for a second straight session after a slight dip on Monday, reaching a three-day peak near the 0.7170 level during the Asian session. However, the pair continues to trade within a well-established range seen over the past couple of weeks, suggesting that bullish traders should remain cautious for now.

The US Dollar remains under pressure, failing to attract strong demand despite ongoing tensions between the US and Iran and the stalemate over the Strait of Hormuz. Market participants appear hesitant ahead of this week’s key FOMC meeting. At the same time, a broadly positive risk sentiment weakens the Greenback’s safe-haven appeal, while the Reserve Bank of Australia’s hawkish stance provides additional support to the Aussie.

From a technical standpoint, the recent sideways movement can be viewed as a bullish consolidation phase, following the rebound from the 100-day Simple Moving Average seen in March. Momentum indicators continue to support a constructive outlook, implying that the overall bias remains tilted to the upside and reinforcing expectations of a potential breakout.

The Relative Strength Index stays above 60 without entering overbought territory, indicating ongoing buying pressure. Meanwhile, the MACD remains in positive territory, confirming that the upward move is supported by solid momentum. Still, a clear break above the 0.7185–0.7190 resistance zone is needed to validate further gains.

On the downside, any pullback is likely to be viewed as a buying opportunity, with solid support expected ahead of the 0.7100 level. A decisive drop below this area, especially if accompanied by weakening momentum indicators, could signal the start of a corrective phase within the broader uptrend.