AUD Market Update
07 May 2026 • 00:27 GMT
The Australian dollar has recently hit 90-day highs near 0.7237 against the US dollar, sitting around 2.4% above its recent three-month average. While the AUD's rally has been steady, traders are cautious as it remains within a broad range from 0.6853 to 0.7237.
The AUD benefits from the Reserve Bank of Australia’s latest rate hike to 4.35%, making it the highest-yielding currency among G10s, and its strong ties to energy exports bolster its outlook. However, persistent cautiousness from the RBA and resistance near key levels like 0.72715 may cap gains soon.
Meanwhile, the US dollar has seen some weakness lately, weighed down by improved risk sentiment following the US-Iran ceasefire. This has helped the AUD strengthen further against the US dollar, but ongoing geopolitical tensions and US rate expectations could still influence future movements.
Overall, the AUD remains resilient, with potential for further gains if risk appetite continues. But traders should stay alert to oil prices, central bank signals, and broader market sentiment, which could determine whether the AUD stays near these recent highs or sees a pullback.
📊 Quick forecast view
🔴 Mild downside
0.7110 – 0.7240
🌍 Global risk sentiment
🟢 Uptrend
